EPA-R-HQ-NCIF-23-01.pdf

FEDERAL AGENCY AND OFFICE: U.S. Environmental Protection Agency, Office of the Greenhouse Gas Reduction Fund

FUNDING OPPORTUNITY TITLE: National Clean Investment Fund (NCIF)

ANNOUNCEMENT TYPE: Request for Applications (RFA)

FUNDING OPPORTUNITY NUMBER: EPA-R-HQ-NCIF-23

ASSISTANCE LISTING NUMBER: 66.957

IMPORTANT DATES:

October 12, 2023 Closing Date

By March 2024 Anticipated Notification of Selections

By July 2024 Anticipated Start of Period of Performance

DEADLINE: Application packages must be submitted on or before October 12, 2023 at 11:59

PM (Eastern Time) through Grants.gov. Applications received after the closing date and time will not be considered for funding. Please refer to Section IV.A: Due Date and Submission Instructions and Appendix A: Grants.gov Application Submission Instructions for further instructions.

NOTE: Transfers of EPA funds awarded through this competition must comply with the

Procurement Standards in 2 CFR Parts 200 and 1500, EPA Subaward Policy, and EPA Guidance on Participant Support Costs, depending on the vehicle that the grantee uses to transfer funds, as well as the Participation by Disadvantaged Business Enterprises in EPA Programs requirements in 40 CFR Part 33. Prior to naming contractors (including consultants) or subrecipients in your application, please carefully review Section IV.d, “Contracts and Subawards,” of EPA Solicitation

Clauses as well as the guidance in Section III.B: Named Contractors and Named Subrecipients.

EPA does not accept justifications for sole source contracts for services or products available in the commercial marketplace based on a contractor’s role in preparing an application or existing relationships that an applicant may have established without complying with competitive procurement requirements. For this competition, EPA requires applicants that name subrecipients to submit coalition applications and include the named subrecipients as coalition members; all named subrecipients must be coalition members.

As discussed in Section IV.A: Due Date and Submission Instructions, in concert with EPA’s commitment to conducting business in an open and transparent manner, copies of applications selected under this funding opportunity may be made publicly available on the GGRF website or another public website for a period of time after the selected applications are announced.

Therefore, clearly indicate which portion(s) of the application, if any, you are claiming contains confidential, privileged, or sensitive information. As provided at 40 CFR § 2.203(b), if no claim of confidential treatment accompanies the information when it is received by EPA, it may be made available to the public by EPA without further notice to the applicant.

https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://www.epa.gov/sites/default/files/2020-11/documents/epa-guidance-on-participant-support-costs.pdf https://www.epa.gov/sites/default/files/2020-11/documents/epa-guidance-on-participant-support-costs.pdf https://www.epa.gov/grants/disadvantaged-business-enterprise-program-requirements https://www.epa.gov/grants/epa-solicitation-clauses

Contents Section I. Funding Opportunity Description

A. Background

B. Statutory Authority

C. GGRF Program Objectives

D. Competition Terminology

E. Scope of Work

F. Environmental Results and Strategic Plan Information

G. Measuring Environmental Results: Example Outputs and Outcomes

H. Additional Provisions for Applicants Incorporated into the Funding Opportunity

Section II. Federal Award Information

A. Number and Amount of Awards

B. Conditional Awards

C. Period of Performance

D. Partial Funding

E. Additional Awards

F. Funding Type

Section III. Eligibility Information

A. Eligible Applicants

B. Named Contractors and Named Subrecipients

C. Threshold Eligibility Criteria

D. Allowable and Unallowable Costs

Section IV. Application and Submission Information

A. Due Date and Submission Instructions

B. Application Materials

C. Content of Application Submission

D. Pre-Application Assistance

Section V. Application Review Information

A. Evaluation Criteria

B. Review and Selection Process

Section VI. Award Administration Information

A. Award Notification and Disputes

B. Grant Drawdown Schedule

C. Program Income Requirements

D. Administrative and National Policy Requirements

E. Reporting Requirements

F. Audit Requirements

G. Remedies for Non-Compliance

Section VII. Contact Information

Appendix A. Grants.gov Application Submission Instructions

A. Requirement to Submit through Grants.gov and Limited Exception Procedures

B. Submission Instructions

C. Technical Issues with Submission

Appendix B. Qualified Project Checklist

Appendix C. Guidance for Low-Income and Disadvantaged Community Expenditures

Appendix D. Program Budget

A. Guidance for Detailed Budget Table

B. Guidance for Financial Assistance in the Detailed Budget Table

Section I. Funding Opportunity Description

A. Background In the United States and globally, we are already experiencing the impacts of climate change. As described in The Long-Term Strategy of the United States, the time is now for decisive action, and the United States is boldly tackling the climate crisis. The Biden Administration has set climate goals to reduce greenhouse gas emissions 50-52 percent below 2005 levels in 2030, reach 50 percent zero-emission vehicles share of all new passenger cars and light trucks sold in 2030, achieve a carbon pollution-free electricity sector by 2035, and achieve net-zero emissions by no later than 2050, as outlined in the U.S. Nationally Determined Contribution and in Executive Order

14037 (Strengthening American Leadership in Clean Cars and Trucks). Further, the Biden

Administration has been clear that achieving these and other climate goals must simultaneously deliver against other critical priorities, including promoting equity and environmental justice, strengthening our economic competitiveness, creating high-quality jobs, and growing our energy independence. President Biden has codified these priorities in Executive Order 14005 (Ensuring the Future Is Made in All of America by All of America's Workers), Executive Order 14008

(Tackling the Climate Crisis at Home and Abroad), Executive Order 14082 (Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022), and Executive

Order 14096 (Revitalizing Our Nation’s Commitment to Environmental Justice for All). President

Biden is furthering these priorities through targeted initiatives, such as the Interagency Working

Group on Coal and Power Plant Communities, which targets the economic revitalization of coal and power plant communities, and the Justice40 Initiative, which sets the goal that 40% of the overall benefits from certain federal investments flow to disadvantaged communities. Achieving these goals and priorities will require a tremendous amount of financing and private capital for greenhouse gas- and air pollution-reducing projects across the country, especially in and for the benefit of low-income and disadvantaged communities.

President Biden’s Inflation Reduction Act authorized the U.S. Environmental Protection Agency

(EPA) to implement the Greenhouse Gas Reduction Fund (GGRF) to help achieve these goals and priorities, creating a historic $27 billion investment in communities across the country—from states to territories to Tribal lands, from the largest urban cities to the most remote rural towns.

This bold investment will not only deploy clean energy and combat the climate crisis but also improve health outcomes, lower energy costs, and create high-quality jobs for Americans—all while strengthening our country’s economic competitiveness and ensuring energy security.

As part of this investment, EPA is launching three distinct but complementary grant competitions:

a $14 billion National Clean Investment Fund competition to finance clean technology deployment nationally; a $6 billion Clean Communities Investment Accelerator competition to finance clean technology deployment in low-income and disadvantaged communities while simultaneously building the capacity of community lenders that serve those communities; and a $7 billion Solar for All competition to spur adoption of clean distributed solar energy that lowers energy bills for millions of Americans in low-income and disadvantaged communities. The National Clean

Investment Fund and Clean Communities Investment Accelerator will work in tandem to deploy much-needed capital for clean technologies into communities across the country. The National

Clean Investment Fund will create centralized, long-term financing institutions with the scale required to transform financial markets, while the Clean Communities Investment Accelerator will https://www.whitehouse.gov/wp-content/uploads/2021/10/US-Long-Term-Strategy.pdf https://unfccc.int/sites/default/files/NDC/2022-06/United%20States%20NDC%20April%2021%202021%20Final.pdf https://www.federalregister.gov/documents/2021/08/10/2021-17121/strengthening-american-leadership-in-clean-cars-and-trucks https://www.federalregister.gov/documents/2021/08/10/2021-17121/strengthening-american-leadership-in-clean-cars-and-trucks https://www.federalregister.gov/documents/2021/01/28/2021-02038/ensuring-the-future-is-made-in-all-of-america-by-all-of-americas-workers https://www.federalregister.gov/documents/2021/01/28/2021-02038/ensuring-the-future-is-made-in-all-of-america-by-all-of-americas-workers https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.federalregister.gov/documents/2022/09/16/2022-20210/implementation-of-the-energy-and-infrastructure-provisions-of-the-inflation-reduction-act-of-2022 https://www.federalregister.gov/documents/2022/09/16/2022-20210/implementation-of-the-energy-and-infrastructure-provisions-of-the-inflation-reduction-act-of-2022 https://www.federalregister.gov/documents/2023/04/26/2023-08955/revitalizing-our-nations-commitment-to-environmental-justice-for-all https://www.federalregister.gov/documents/2023/04/26/2023-08955/revitalizing-our-nations-commitment-to-environmental-justice-for-all https://energycommunities.gov/ https://energycommunities.gov/ https://www.whitehouse.gov/environmentaljustice/justice40/ build the capacity of community lenders to draw on that capital to catalyze deployment of projects in communities all across the country—especially in communities that have long faced barriers accessing capital and that most need the benefits of clean technology projects. All competitions are covered under the President’s Justice40 Initiative, which sets the goal that 40% of the overall benefits from certain federal investments in climate, clean energy, and other areas flow to disadvantaged communities. This competition will require each grantee to expend at least 40% of funds for the purposes of providing financial assistance in low-income and disadvantaged communities, as defined in this funding opportunity.

This Notice of Funding Opportunity provides details on the $14 billion National Clean

Investment Fund competition. This competition will provide grants to 2–3 national nonprofit financing entities to create national clean financing institutions capable of partnering with the private sector to provide accessible, affordable financing for tens of thousands of clean technology projects nationwide. These national nonprofits will provide financing to individuals and families, nonprofit organizations, for-profit businesses (especially small businesses), units of government, and others deploying these projects, which will reduce pollution while creating jobs, accelerating progress toward energy security, and lowering energy costs. These national nonprofits will also provide capital to community lenders and other similar institutions so that they can, in turn, provide financing to the communities that they serve. To multiply the impact of public funds, these national nonprofit financing entities will mobilize private capital as they finance these projects, ensuring that every dollar of public funds generates several times more private-sector investment into emissions- and air pollution-reducing projects. To ensure that public funds are spent efficiently and for the maximum benefit of American communities, especially low-income and disadvantaged communities, these national nonprofit financing entities will be subject to, among other measures, rigorous community engagement and accountability strategies; comprehensive equity policies and practices; robust labor and workforce plans; strong governance structures; stringent legal and compliance risk management, financial risk management, and consumer protection plans; and cohesive programmatic, financial, and administrative reporting and transparency requirements.

B. Statutory Authority The Inflation Reduction Act 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 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.

The statute limits the entities eligible to compete for funds under Section 134(a)(2) and 134(a)(3) to “eligible recipients.” Section 134(c)(1) defines an eligible recipient as a nonprofit organization https://www.whitehouse.gov/environmentaljustice/justice40/ 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.

The statute also 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.

C. GGRF Program Objectives The National Clean Investment Fund will advance the three GGRF program objectives of reducing emissions of greenhouse gases and other air pollutants; delivering benefits to American communities, particularly low-income and disadvantaged communities; and mobilizing financing and private capital.

• Program Objective 1: Reduce emissions of greenhouse gases and other air pollutants.

Grantees will invest in projects, activities, and technologies that reduce emissions of greenhouse gases and other air pollutants that harm communities and contribute to climate change. Grantees will accelerate progress toward the climate goals of the United States, including reducing greenhouse gas emissions 50-52 percent below 2005 levels in 2030, reaching 50 percent zero-emission vehicles share of all new passenger cars and light trucks sold in 2030, achieving a carbon pollution-free electricity sector by 2035, and achieving net-zero emissions by no later than 2050.

• Program Objective 2: Deliver benefits of greenhouse gas- and air pollution-reducing projects to American communities, particularly low-income and disadvantaged communities.1 Grantees will ensure that the projects they invest in directly benefit

Americans by improving health outcomes, lowering energy costs, creating high-quality jobs, and more. At least 40% of funds awarded under this competition must be used for the purposes of providing financial assistance in low-income and disadvantaged communities.

• Program Objective 3: Mobilize financing and private capital to stimulate additional deployment of greenhouse gas- and air pollution-reducing projects. Grantees will mobilize financing and private capital for underinvested projects and underinvested communities, which will demonstrate the market-wide opportunity for financial markets and institutions to finance clean technology projects. As a result, grantees will spur market

1 This funding solicitation uses the term “American communities” to refer to communities within the boundaries of the ten EPA regions and to “Americans” as individuals living within the boundaries of the ten EPA regions. The ten regions are: EPA Region 1 (CT, ME, MA, NH, RI, VT, and 10 Indian Tribes); EPA Region 2 (NJ, NY, PR, VI, and 8

Indian Nations); EPA Region 3 (DE, DC, MD, PA, VA, WV, and 7 Indian Tribes); EPA Region 4 (AL, FL, GA, KY, MS, NC, SC, TN, and 6 Indian Tribes); EPA Region 5 (IL, IN, MI, MN, OH, WI, and 35 Indian Tribes); EPA Region

6 (AR, LA, NM, OK, TX, and 66 Indian Tribes); EPA Region 7 (IA, KS, NE, MO, and 9 Indian Tribes); EPA Region

8 (CO, MT, ND, SD, UT, WY, and 28 Indian Tribes); EPA Region 9 (AZ, CA, HI, NV, American Samoa, Commonwealth of the Northern Mariana Islands, Federated States of Micronesia, Guam, Marshall Islands, Republic of Palau, and 148 Indian Tribes); and EPA Region 10 (AK, ID, OR, WA, and 271 Indian Tribes).

transformation, supporting market-wide accessibility of affordable financing for clean technology projects to multiply the impact of grant funds.

Grantees must align their programs with these three objectives, including setting goals and targets as described in Section IV.C: Content of Application Submission.

D. Competition Terminology

This section defines competition terminology referenced throughout this funding opportunity.

Some of this terminology includes important requirements of the grant award that should be carefully considered in preparing the application.

Capital Mobilization: For this competition, capital mobilization refers to capital contributions made toward qualified projects as a result of the grant’s activities, excluding capital contributions made with grant funds. Private capital mobilization is defined as a subset of capital mobilization, excluding additional capital contributions (such as tax credits and other financial incentives) from federal, Tribal, state, territorial, and local government entities. Applicants may define their own methodologies to set goals and targets for capital mobilization for the purposes of their applications. An example methodology is provided below; applicants that do not use this methodology will not be penalized.

Capital mobilization is defined as additional capital contributions toward projects that are financed by the grantee (this figure excludes the grant funds themselves). Additional capital contributions may include financing provided by the grantee with funds raised from private capital providers and philanthropic sources (including through balance-sheet leverage and securitizations), additional sources of financing provided to project sponsors from private capital providers, and equity contributions from project sponsors. The capital mobilization ratio is defined as the grantee’s capital mobilization, divided by the grantee’s capital commitments through financial assistance. This ratio excludes the grantee’s expenditures for predevelopment, market-building, and program administration activities.

Coalition Application: A coalition application is one of two types of eligible applications under this competition, with the other type being an individual application as described in Section III.A:

Eligible Applicants. A coalition application is composed of one lead applicant, which partners with one or more non-lead coalition members that are named in the application and would receive subawards (in the form of subgrants) to carry out a portion of the grant’s activities if the application is selected. Subgrantees may engage in any of the grant’s eligible activities other than providing subgrants to other organizations for those organizations to provide financial assistance to qualified projects. However, these and other first-tier subgrantees may still provide subgrants to second-tier subgrantees for predevelopment, market-building, and program administration activities to the extent permitted in Appendix A of the EPA Subaward Policy.

The lead applicant must be an eligible recipient and submit the application on behalf of the coalition. The non-lead coalition member(s) may be eligible recipients or other types of organizations eligible for subawards under the EPA Subaward Policy. A coalition application should describe the lead applicant’s program plan and organizational plan, incorporating the activities of coalition members as well as the lead applicant’s management and oversight https://www.epa.gov/sites/default/files/2020-11/documents/gpi-16-01-subaward-policy_app-a.pdf https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients of those activities. For example, the portfolio allocation should describe the project categories that will be deployed through activities carried out by the lead applicant and non-lead coalition members, and the legal and compliance risk management plan should describe how the lead applicant will manage legal and compliance risk across its own activities as well as the activities of non-lead coalition members.

If selected, the lead applicant will become the grantee, administer the grant as a pass-through entity for the purposes of 2 CFR Part 200 and the EPA Subaward Policy, and be accountable to EPA for effectively carrying out the full scope of work and the proper financial management of the grant

(including subawards to non-lead coalition members). Additionally, if selected, as provided in 2

CFR § 200.332, non-lead coalition members will become subrecipients accountable to the lead applicant for proper use of EPA funding. Note that pursuant to 2 CFR § 200.332(a)(2), as implemented in Items 2 and 4 of EPA’s Establishing and Managing Subawards General Term and Condition, successful lead applicants of coalitions must ensure that the terms and conditions of the grant agreement “flow down” to any coalition members that are provided subawards. EPA has developed a template for subaward agreements, available in Appendix

D of the EPA Subaward Policy.

Community Lender: Under the Clean Communities Investment Accelerator, grantees will provide funding and technical assistance to “community lenders,” which are public, quasi-public, not-for-profit, or nonprofit entities that provide financial assistance to qualified projects at the state, local, territorial, or Tribal level or in the District of Columbia, including community- and low-income-focused lenders and capital providers. In addition to being eligible for funding and technical assistance from grantees of the Clean Communities Investment Accelerator, community lenders are eligible to transact with grantees of the National Clean Investment Fund through loans, loan guarantees, and other financial products.

Financial Assistance: Section 134(b)(1) of the Clean Air Act directs that grantees use funds for

“financial assistance.” For this competition, consistent with the definition of “Federal financial assistance” in 2 CFR § 200.1, financial assistance constitutes financial products, including debt

(such as loans, partially forgivable loans, forgivable loans, zero-interest and below-market interest loans, loans paired with interest rate buydowns, secured and unsecured loans, lines of credit, subordinated debt, warehouse lending, loan purchasing programs, and other debt instruments), equity (such as equity project finance investments, private equity investments, and other equity instruments), hybrids (such as mezzanine debt, preferred equity, and other hybrid instruments), and credit enhancements (such as loan guarantees, loan guarantee funds, loan loss reserves, and other credit enhancement instruments). For this competition, subgrants are not eligible as financial assistance. Grantees’ expenditures for financial assistance will be in the form of Subawards, Participant support costs, and acquisitions of Intangible property for a financial assistance purpose, as defined in 2 CFR § 200.1, with the characterization dependent on the nature of the financial assistance. Additional information is provided in Appendix D.B: Guidance for Financial

Assistance in the Detailed Budget Table.

Grantees may provide financial assistance to various types of counterparties, which include (as examples) project sponsors as well as community lenders and other similar institutions. Project sponsors—such as individuals and families, nonprofit organizations and for-profit businesses, and https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://www.epa.gov/grants/grant-terms-and-conditions#general https://www.epa.gov/grants/grant-terms-and-conditions#general https://www.epa.gov/sites/default/files/2020-11/documents/gpi-16-01-subaward-policy_app-d.pdf https://www.epa.gov/sites/default/files/2020-11/documents/gpi-16-01-subaward-policy_app-d.pdf others—may receive financial products such as consumer and business loans to deploy qualified projects in their homes, businesses, and communities. Community lenders and other similar institutions—including community development financial institutions, credit unions, green banks, housing finance agencies, minority depository institutions, farmer-owned cooperatives, community banks, and mission-driven investors—may receive financial products such as warehouse loans, preferred equity investments, and loan guarantees as well as participate in loan purchasing programs that directly enable them to provide financial products to deploy qualified projects in their communities.

Note: If your application proposes financial assistance in the form of equity investments, it will be expected to account for the unique risks of equity investments as well as the capabilities required to manage those risks. This includes, but is not limited to, describing the types of equity investments planned and the allocation of funds across those types of equity investments, providing investment policies to manage the risks of those equity investments, explaining how those equity investments generate program income to support continued operability, describing the staffing plan capable of conducting diligence of such equity investments, sharing a financial risk management plan that accounts for the unique features of those equity investments, and more.

Low-Income and Disadvantaged Communities: GGRF defines low-income and disadvantaged communities as encompassing the following four categories, as defined below: (a) communities identified as disadvantaged by the CEJST mapping tool; (b) a limited number of additional communities identified as disadvantaged by the EJScreen mapping tool; (c) geographically dispersed low-income households; and (d) properties providing affordable housing. Section

134(a)(3) of the Clean Air Act appropriates funds “for the purposes of providing financial assistance and technical assistance in low-income and disadvantaged communities.” For this competition, grantees will be required to use at least 40% of grant funds for the purposes of providing financial assistance in the low-income and disadvantaged communities defined below.

Appendix C: Guidance for Low-Income and Disadvantaged Community Expenditures provides guidance for assessing expenditures against this requirement.

a. CEJST-Identified Disadvantaged Communities: The Climate and Economic Justice

Screening Tool (CEJST) is a publicly-available mapping tool developed by the White

House Council on Environmental Quality. GGRF’s definition of “disadvantaged communities” includes all communities identified as disadvantaged through the CEJST.

b. EJScreen-Identified Disadvantaged Communities: EJScreen is a publicly-available, place-based environmental justice screening and mapping tool developed by the EPA.

GGRF’s definition of “disadvantaged communities” includes (1) the limited supplemental set of census block groups that are at or above the 90th percentile for any of EJScreen’s supplemental indexes when compared to the nation or state or (2) geographic areas within

Tribal lands as included in EJScreen.2

c. Geographically Dispersed Low-Income Households: GGRF’s definition of

“geographically dispersed low-income households” includes low-income individuals and households that fall within either of the two categories listed below.

2 Within EJScreen, EJScreen-Identified Disadvantaged Communities can be found in the “Places” tab by clicking the

“Justice40/IRA” category and then selecting “EPA IRA Disadvantaged Communities.” This includes the following

Tribal lands: Alaska Native Allotments, Alaska Native Villages, American Indian Reservations, American Indian Off-reservation Trust Lands, and Oklahoma Tribal Statistical Areas.

https://screeningtool.geoplatform.gov/en/#3/33.47/-97.5 https://www.epa.gov/ejscreen https://screeningtool.geoplatform.gov/en https://screeningtool.geoplatform.gov/en https://www.epa.gov/ejscreen https://www.epa.gov/ejscreen/download-ejscreen-data https://www.epa.gov/ejscreen/download-ejscreen-data https://www.epa.gov/ejscreen https://epa.maps.arcgis.com/home/item.html?id=e7373076bd494020aa962123579c5b97 https://epa.maps.arcgis.com/home/item.html?id=59c522c51a85413e88822e5155485602 https://epa.maps.arcgis.com/home/item.html?id=b04b580b3e5e40cc8152b14583814073 https://epa.maps.arcgis.com/home/item.html?id=8661e06adc4c477f99dfe1078f1059fb https://epa.maps.arcgis.com/home/item.html?id=8661e06adc4c477f99dfe1078f1059fb https://epa.maps.arcgis.com/home/item.html?id=417d202e8213423f916f3751c6572f83

• Individuals and households with incomes at or below the greater of:

o For Metropolitan Areas: (1) 80% Area Median Income (AMI) and (2)

200% of the Federal Poverty Level o For Non-Metropolitan Areas: (1) 80% AMI; (2) 80% Statewide Non-

Metropolitan Area AMI; and (3) 200% of the Federal Poverty Level

• Individuals and households currently approved for assistance from or participation in at least one of the following income-based or income-verified federal assistance programs, with an award letter within the last 12 months: (1) U.S. Department of

Health and Human Services’ (HHS) Low Income Home Energy Assistance

Program; (2) U.S. Department of Agriculture’s (USDA) Supplemental Nutrition

Assistance Program; (3) U.S. Department of Energy’s (DOE) Weatherization

Assistance Program; (4) Federal Communications Commission’s Lifeline Support for Affordable Communications; (5) USDA’s National School Lunch Program; (6)

U.S. Social Security Administration’s Supplemental Security Income; or (7) any other verified government or non-profit program serving Asset Limited, Income

Constrained, Employed (ALICE) individuals or households designated by the EPA

Administrator

d. Properties Providing Affordable Housing: GGRF’s definition of “properties providing affordable housing” includes properties serving low-income individuals and households that fall within either of the two categories listed below.

• Multifamily housing with rents not exceeding 30% of 80% AMI for at least half of residential units and with an active affordability covenant from one of the following federal or state housing assistance programs: (1) Low-Income Housing Tax Credit;

(2) a housing assistance program administered by the U.S. Department of Housing and Urban Development (HUD), including Public Housing, Section 8 Project-

Based Rental Assistance, Section 202 Housing for the Elderly, Section 811

Housing for Disabled, Housing Trust Fund, Home Investment Partnership Program

Affordable Rental and Homeowner Units, Permanent Supportive Housing, and other programs focused on the goal of ending homelessness funded under HUD’s

Continuum of Care Program; (3) a housing assistance program administered by

USDA under Title V of the Housing Act of 1949, including under Sections 514 and

515; (4) a housing assistance program administered by a tribally designated housing entity, as defined in Section 4(22) of the Native American Housing Assistance and

Self-Determination Act of 1996 (25 USC § 4103(22)); or (5) any other housing assistance program designated by the EPA Administrator

• Naturally-occurring (unsubsidized) affordable housing with rents not exceeding

30% of 80% AMI for at least half of residential units3

Market-Building Activities: Under 2 CFR § 200.403 and other applicable provisions of 2 CFR

Part 200, Subpart E, costs are allowable under federal awards so long as they are necessary and reasonable for the performance of the grant award. For this competition, consistent with these regulations, market-building activities are allowable costs, with such activities (1) building the market for financeable qualified projects, (2) not tied directly to qualified projects grantees intend

3 Applicants will be evaluated on their investment policies to integrate housing affordability protection, including but not limited to policies that maintain affordability of existing housing stock, minimize displacement, and prevent rapid cost increases.

https://www.acf.hhs.gov/ocs/low-income-home-energy-assistance-program-liheap https://www.acf.hhs.gov/ocs/low-income-home-energy-assistance-program-liheap https://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program https://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program https://www.energy.gov/scep/wap/weatherization-assistance-program https://www.energy.gov/scep/wap/weatherization-assistance-program https://www.fcc.gov/lifeline-consumers https://www.fcc.gov/lifeline-consumers https://www.fns.usda.gov/nslp https://www.ssa.gov/ssi to finance, and (3) being necessary and reasonable for the deployment of financial assistance to qualified projects. Market-building activities include activities to generate market-wide demand for qualified projects, including (but not limited to) marketing, customer education and engagement, community outreach, contractor engagement, workforce development, and other non-financial market-building activities. Market-building activities also include activities to build a more supportive financial market for financing qualified projects, including (but not limited to) standardization of documentation, development of new financial products, and other financial market-building activities.

Predevelopment Activities: Under 2 CFR § 200.403 and other applicable provisions of 2 CFR

Part 200, Subpart E, costs are allowable under federal awards so long as they are necessary and reasonable for the performance of the grant award. For this competition, consistent with these regulations, predevelopment activities are allowable costs, with such activities (1) improving the likelihood of the grantee financing qualified projects, (2) tied directly to qualified projects grantees intend to finance, and (3) being necessary and reasonable for the deployment of financial assistance to qualified projects. Predevelopment activities include (but are not limited to) site and building assessments (e.g., energy audits); financial and technological feasibility studies (e.g., solar resource studies); design and engineering support; and permitting support.

Program Administration Activities: Under 2 CFR § 200.403 and other applicable provisions of

2 CFR Part 200, Subpart E, costs are allowable under federal awards so long as they are necessary and reasonable for the performance of the grant award. For this competition, consistent with these regulations, program administration activities are allowable costs, with such activities supporting administration of the grant program. Program administration activities include (but are not limited

to) conducting due diligence and underwriting financial transactions; establishing and convening advisory councils; conducting program performance and other reporting activities (e.g., expenditures for personnel and equipment to procure technology infrastructure and expertise for data analysis, performance, and evaluation); and supporting, monitoring, overseeing, and auditing subrecipients, contractors, and program beneficiaries.

Priority Project Categories: For this competition, priority project categories include: (a) distributed energy generation and storage; (b) net-zero emissions buildings; and (c) zero-emissions transportation. A project that falls within one or more of the priority project categories is likely to be a qualified project, but it is not guaranteed to be a qualified project. Applications are expected to either cover each of the priority project categories in their investment strategies or provide a rationale for why any of the priority project categories are not covered; any application with such a rationale will not be penalized and will instead be awarded points based on the strength of the rationale. Note that any project that meets the requirements of a qualified project is eligible for support under this competition.

a. Distributed Energy Generation and Storage: Projects, activities, and technologies that deploy small-scale power generation and/or storage technologies (typically from 1 kW to

10,000 kW), plus enabling infrastructure necessary for deployment of such generation and/or storage technologies. For this competition, the projects, activities, and technologies must support carbon pollution-free electricity, which is electrical energy produced from resources that generate no carbon emissions, consistent with the definition specified in

Executive Order 14057 (Catalyzing Clean Energy Industries and Jobs Through Federal https://www.federalregister.gov/documents/2021/12/13/2021-27114/catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability

Sustainability). Examples of the types of projects in this category include (but are not limited to): residential rooftop solar; residential rooftop solar-plus-storage; community wind and solar; fuel cells; stand-alone energy storage, including replacement of backup diesel generators with battery storage; distributed generation and storage assets that support microgrids; and the previously listed projects paired with distribution system upgrades necessary for project interconnection. This priority project category is intended to make an outsized impact on delivering clean energy and energy efficiency benefits—especially to low-income and disadvantaged communities.

b. Net-Zero Emissions Buildings: Projects, activities, and technologies that either (1) retrofit an existing building, making a substantial contribution to that building being a net-zero emissions building and as part of a plan for that building achieving zero-over-time, or (2) construct a new net-zero emissions building in a low-income and disadvantaged community. Net-zero emissions buildings are defined in Executive Order 14057

Implementing Instructions,4 with the primary focus of reducing emissions but with occupant health, environmental stewardship, and climate resilience also as critical elements of a holistic building design, construction, and operations strategy. Net-zero emissions buildings include residential (e.g., 1- to 4-family homes, manufactured homes, multifamily housing), commercial, industrial, and other buildings—especially properties providing affordable housing. Examples of the types of projects in this category include (but are not limited to): decarbonization of affordable multifamily housing through energy and water efficiency, geothermal heating and cooling, and grid-interactive appliance electrification;

school building space and water heating grid-interactive electrification; whole-home retrofits for 1- to 4-family homes and manufactured homes to improve energy efficiency;

decarbonization retrofits as part of adaptive reuse of existing buildings to create housing, childcare centers, and other community facilities; and new construction of net-zero residential buildings in rural areas as well as in urban infill, transit-oriented locations that are in low-income and disadvantaged communities. This priority project category is intended to make an outsized impact on delivering affordable and sustainable housing benefits—especially to low-income and disadvantaged communities.

c. Zero-Emissions Transportation: Projects, activities, and technologies that deploy zero-emissions transportation modes, plus enabling infrastructure necessary for zero-emissions transportation modes—especially in communities that are overburdened by existing diesel pollution, particulate matter concentration, and degraded air quality. Zero-emissions transportation should be consistent with the zero-emissions transportation decarbonization strategies in The U.S. National Blueprint for Transportation Decarbonization. Examples of the types of projects in this category include (but are not limited to): deployment of chargers (including prewiring for future charger installation) and other infrastructure to support zero-emissions micromobility options (e.g., electric bikes and scooters) as well as zero-emissions light-duty vehicles for individuals and families, particularly at and near multifamily housing; deployment of chargers and other infrastructure to support zero-emissions medium- and heavy-duty vehicles for small businesses and farms; charging and refueling depots for zero-emissions school buses, trucks, and public transportation

4 As defined in Executive Order 14057, a net-zero emissions building is an efficient, all electric building that is designed and operated so scope 1 and scope 2 greenhouse gas emissions from all facility energy use equal zero on an annual basis, when connected to on-site renewable energy or a regional grid that provides 100 percent carbon-free electricity on a net annual basis.

https://www.federalregister.gov/documents/2021/12/13/2021-27114/catalyzing-clean-energy-industries-and-jobs-through-federal-sustainability https://www.sustainability.gov/pdfs/EO_14057_Implementing_Instructions.pdf https://www.sustainability.gov/pdfs/EO_14057_Implementing_Instructions.pdf https://www.energy.gov/sites/default/files/2023-01/the-us-national-blueprint-for-transportation-decarbonization.pdf vehicles; and small-scale infrastructure to improve walkability and bikeability. This priority project category is intended to make a particular impact on delivering clean transportation benefits—especially to low-income and disadvantaged communities.

Program Income: Consistent with 2 CFR § 200.1, Program income means gross income earned by a grantee (or a subgrantee) that is directly generated by a supported activity or earned as a result of the grant award. For this competition, program income includes but is not limited to loan and other origination fees, interest payments, principal repayments, dividends from equity investments, interest from short-term securities (e.g., cash deposits), asset sales, and other sources of program income. EPA-specific rules on program income are provided at 2 CFR § 1500.8 and on the coverage of allowable fund raising costs are provided under 2 CFR § 200.442 (with additional details in Item 4 of the EPA Guidance on Selected Items of Cost for Recipients). These rules apply to grantees as well as subgrantees (such as non-lead coalition members) that are provided subgrants for the purposes of carrying out a portion of the grant’s activities. Additional guidance will be provided in the terms and conditions of the grant agreement.

Qualified Project: Section 134(c)(3) of the Clean Air Act provides that a qualified project is any project, activity, or technology that (A) reduces or avoids greenhouse gas emissions and 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. For this competition, a project must meet all six requirements listed below at the time of financing to be eligible as a “qualified project.” Note that any project that meets the requirements of a qualified project is eligible for support under this competition. Appendix B: Qualified Project Checklist provides an illustrative checklist of these requirements.

a. The project, activity, or technology would reduce or avoid greenhouse gas emissions,5 consistent with the climate goals of the United States to reduce greenhouse gas emissions

50-52 percent below 2005 levels in 2030, reach 50 percent zero-emission vehicles share of all new passenger cars and light trucks sold in 2030, achieve a carbon pollution-free electricity sector by 2035, and achieve net-zero emissions by no later than 2050. The project, activity, or technology may reduce or avoid such emissions through its own performance or through assisting communities in their efforts to deploy projects, activities, or technologies that reduce or avoid such emissions.

b. The project, activity, or technology would reduce or avoid emissions of other air pollutants.

The project, activity, or technology may reduce or avoid such emissions through its own performance or through assisting communities in their efforts to deploy projects, activities, or technologies that reduce or avoid such emissions.

c. The project, activity, or technology would deliver additional benefits (i.e., in addition to reducing or avoiding emissions of greenhouse gases and other air pollutants) to American communities within one or more of the following four categories: clean energy and energy efficiency; clean transportation; affordable and sustainable housing; and training and workforce development.6

5 For the purposes of this competition, greenhouse gas emissions are carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride, as defined in Section 134(c)(2) of the Clean Air Act.

6 The Interim Implementation Guidance for the Justice40 Initiative provides examples of benefits aligned to these categories for the purposes of this competition.

https://www.epa.gov/grants/rain-2018-g01-r https://www.whitehouse.gov/wp-content/uploads/2021/07/M-21-28.pdf

d. The project, activity, or technology may not have otherwise been financed.

e. The project, activity, or technology would mobilize private capital.

f. The project, activity, or technology would support only commercial technologies, defined as technologies that have been deployed for commercial purposes at least three times for a period of at least five years each in the United States for the same general purpose as the project, activity, or technology.

E. Scope of Work Note: This section does not contain any threshold requirements for applicants but rather articulates EPA’s vision for the work that grantees will accomplish during and after the period of performance, including the long-term impact of this work. Threshold requirements are included in Section III.C: Threshold Eligibility Criteria.

In the National Clean Investment Fund competition, applicants should propose establishing centralized, long-term financing institutions that provide affordable, accessible financial assistance to help communities deploy qualified projects—with at least 40% of funds used for the purposes of providing financial assistance in low-income and disadvantaged communities. Applicants should ensure that these centralized, long-term financing institutions support the GGRF program objectives, including through aligning with the United States’ climate goals and with associated decarbonization pathways, such as The Long-Term Strategy of the United States; delivering critical benefits, such as improved health outcomes, lower energy costs, and high-quality jobs, to

American communities, especially to low-income and disadvantaged communities most in need of these benefits; and mobilizing private capital to support the financial market transformation required to achieve the United States’ climate goals.

Applicants should provide details on the types of projects they will seek to support, who will deploy those projects, and where they will be deployed. Applicants must propose portfolios that consist of qualified projects, as described in Section I.D: Competition Terminology, which exist in every sector of the economy—Electricity, Transportation, Buildings, Industry, and Agriculture and

Lands. Applicants should justify why their project categories meet the eligibility requirements for qualified projects. Applicants should consider the three priority project categories, as described in

Section I.D: Competition Terminology—distributed energy generation and storage; net zero-emissions buildings; and zero-emissions transportation. Across project types, applicants should describe which segments (e.g., consumers, small businesses) will deploy the projects—with particular consideration for underrepresented businesses that currently and historically have lacked access to capital, such as small businesses, low-income and disadvantaged community-led businesses, Native American-owned businesses, women-owned businesses, and…