EPA-R-OAR-CPRGI-23-07 Revised 2024 01 16.pdf

AGENCY: Environmental Protection Agency (EPA) TITLE: Climate Pollution Reduction Grants Program: Implementation Grants General Competition ACTION: Notice of Funding Opportunity (NOFO) Amendment No. 3

FUNDING OPPORTUNITY NUMBER: EPA-R-OAR-CPRGI-23-07

Assistance Listing No: 66.046 DATE: January 16, 2024

SUMMARY: This Notice makes amendments to the above referenced funding opportunity to update information about entities eligible to apply for the grant; the requirements for coalition applications and Memoranda of Agreement; preferred files and filename formats; adjustments to evaluation criteria 6; and clarification regarding Global Warming Potential (GWP) values to use. This Notice also amends the referenced funding opportunity to provide a checklist containing all required and optional application elements and important details regarding their inclusion in the application.

Specifically, amendments are made on the following pages:

Pages 17-20. Table 2 was updated to reflect that the State of Wyoming withdrew from the planning grant program on November 30, 2023. A paragraph on page 19 was edited to reference the five states (instead of the previous four) now listed as ineligible for the CPRG implementation grant phase. The list of MSA exceptions on page 20 now includes the Cheyenne, WY Metro Area.

Pages 18-19. Table 2 and the paragraph on page 19 are edited to reflect that any municipal entity that is not a city, town, borough, county, parish, or district must provide documented proof that the state or territory in which it is located considers the entity to be a public body created by or pursuant to state law, and that it is accountable to municipal or state units of government. Similarly, state entities other than state agencies, departments, and other executive branch-level offices must provide documentation that the state or territory in which it is located considers the entity to be a public body created by or pursuant to state law.

Page 20. The paragraph is edited to reflect that a coalition’s Memorandum of Agreement (MOA) is not required by the application deadline, but the lead applicant should plan to submit the MOA by July 1, 2024 to CPRG@epa.gov. The lead applicant must include in their application a signed letter of intent from each coalition member stating the member’s intent to sign the

MOA.

Page 22. Threshold eligibility criterion 6 is edited to remove the requirement to include the MOA with a coalition application and add the requirement that coalition applications include letters of intent from each applicant participating in the coalition.

Page 23. Threshold eligibility criterion 8 is edited by striking “disregard” and adding “reject” such that it now reads, “If the applicant does not respond to EPA within two business days of being contacted, EPA will review the last application(s) submitted and will reject all others.”

Page 25: EPA has updated the link to Grants.gov Registration website

Pages 28-30. Application Materials and Project Narrative, Instructions, Format, and Content are edited to include file and filename formats for each document included in the Application Materials, the associated forms in Grants.gov, and clarify which documents are required and which are optional documents. This list adds “letters of intent” as required for coalition applications and removes the requirement to provide a Memorandum of Agreement with the application.

Page 30. A sentence was added to “Type of Application,” clarifying that coalitions must only be comprised of members that provide the letters of intent

Page 31. In Section 1a “Description of GHG Reduction Measures,” the following sentence was added regarding expectations for coalition applications:

• [A coalition application] should also affirmatively declare that the lead applicant will submit an MOA signed by all coalition members by July 1, 2024, or provide an alternative date and justification if they will not be able to meet the July 1st date.

Page 40. In Section 6a “Programmatic Capability and Past Performance,” edits clarify that applicants may list “non-federal” grants in addition to federal grants. In Section 6b, the clause “information from EPA files” was struck and “agency files” was inserted in its place.

Page 49. The clause reading “identified in the coalition’s MOA” was struck from the following sentence: “All members of the coalition identified in the coalition’s MOA must be listed as subrecipients, except the eligible applicant that will be the recipient of the grant (the lead applicant.”

Page 51. Evaluation criteria 1a was edited adding the following clause regarding expectations for coalition applications:

• [In the case of a coalition application…], affirmatively declares that the lead applicant will submit an MOA signed by all coalition members by July 1, 2024, or provides an alternative date and justification if they will not be able to meet the July 1st date.

Page 54. Adds “or non-federal” to evaluation criteria 6a.

Page 54. Corrects a typo in 6c that previously read “…staff knowledge, and resources or ability of obtain them…” to “…staff knowledge, and resources or ability to obtain them…”

Page 56. In Section VI.A, the following sentences were added:

• “The lead applicant for a coalition must submit an MOA signed by all members of the coalition. The lead applicant for a coalition should plan to submit a signed MOA by July 1, 2024. Failure to submit a timely MOA may impact EPA’s ability to award the grant.

See Appendix E for further guidance on the MOA.”

Page 64 and 65. Two paragraphs are edited to clarify that applicants should use Global Warming Potential (GWP) values from the 2013 IPCC AR5 Fifth Assessment Report.

Page 68-70. Appendix D is edited to clarify the application checklist that lists each application element, whether the element is required or optional, each element page limit (if applicable), each element file format, and recommended filename for each element (if applicable).

Page 71. Appendix E is edited to clarify that the Memorandum of Agreement is not due at the time of application but that a MOA signed by all members of a coalition must be provided to EPA before EPA will award any grant. Coalitions should plan on submitting their MOAs to EPA at CPRG@epa.gov by July 1, 2024. Failure to submit the MOA in a timely manner may impact EPA’s ability to award the grant. Also, in the bulleted list of elements that should be included in an MOA, the following bullet is edited as follows (underlined text as addition; strikethrough as struck):

• Provide a statement that the lead applicant will be accountable to EPA and accepts full responsibility for the performance of the coalition and will be accountable to EPA for effectively carrying out the full scope of work and the proper financial management of the grant.

mailto:CPRG@epa.gov

Revised January 16, 2024

AGENCY: ENVIRONMENTAL PROTECTION AGENCY (EPA)

TITLE: Climate Pollution Reduction Grants Program:

Implementation Grants General Competition

ACTION: Notice of Funding Opportunity (NOFO): Request for

Applications

FUNDING OPPORTUNITY NUMBER: EPA-R-OAR-CPRGI-23-07

ASSISTANCE LISTING NO: 66.046

FUNDING AVAILABLE: Approximately $4.3 Billion

KEY DATES

September 20, 2023 NOFO: REQUEST FOR APPLICATIONS ISSUANCE February 1, 2024 OPTIONAL NOTICE OF INTENT TO APPLY IS DUE March 15, 2024 DEADLINE FOR SUBMITTING QUESTIONS April 1, 2024 NOFO CLOSES – APPLICATIONS DUE BY 11:59 PM (ET) July 2024 ANTICIPATED NOTIFICATION OF FUNDING SELECTION October 2024 ANTICIPATED AWARD

APPLICATION SUBMISSION DEADLINE: Application packages must be submitted electronically to EPA through Grants.gov (www.grants.gov) no later than April 1, 2024, at 11:59 p.m. (ET) in order to be considered for funding. Questions related to this NOFO should be submitted to CPRG@epa.gov. The deadline for submitting questions is March 15, 2024. EPA will not respond to questions submitted after that date.

NOTICE OF INTENT TO APPLY: To allow for efficient management of the competitive process, EPA requests submittal of an informal Notice of Intent (NOI) to Apply by February 1, 2024 to CPRG@epa.gov. Please include in the body of the email the dollar amount of the anticipated funding request and one to two sentences about the scope and sector(s) of the greenhouse gas (GHG) reduction measures likely to be included in the potential implementation grant application. Additionally, if intending to apply as the lead applicant representing a coalition, please list all anticipated coalition members (coalition members must also be eligible applicants; see Section III.A for more details). Submission of an NOI is optional and non-binding;

it is a process management tool that will allow EPA to better anticipate the resources required for efficient evaluation of submitted applications.

CONTRACTS AND SUBAWARDS: If the applicant intends to name a contractor (including an individual consultant or equipment vendor) or a subrecipient as a project partner or otherwise in the application, EPA recommends that applicants carefully review and comply with the directions contained in Section IV of this NOFO and at EPA Solicitation Clauses. Refer to EPA’s https://www.grants.gov/ https://www.grants.gov/ mailto:CPRG@epa.gov mailto:CPRG@epa.gov http://www.epa.gov/grants/epa-solicitation-clauses https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance

Best Practice Guide for Procuring Services, Supplies, and Equipment Under EPA Assistance Agreements for additional guidance. Applicants must demonstrate that named contractors (including individual consultants and equipment vendors) were selected in compliance with the competitive requirements of the Procurement Standards in 2 CFR Part 200 as interpreted in EPA guidance and/or that named subrecipients meet the eligibility requirements in EPA’s Subaward Policy for EPA to consider their qualifications and role in the proposed project.

https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/best-practice-guide-procuring-services-supplies-and-equipment-under-epa-assistance https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients https://www.epa.gov/grants/grants-policy-issuance-gpi-16-01-epa-subaward-policy-epa-assistance-agreement-recipients

Climate Pollution Reduction Grants Program Implementation Grants General Competition

Table of Contents

I. Funding Opportunity Description

A. Background and Summary

B. Program Goals and Objectives

C. Environmental Results and Strategic Plan Information

D. Statutory Authority

E. Additional Provisions for Applicants Incorporated into the Solicitation

II. Federal Award Information

A. Amount of Funding Available

B. Number and Amount of Awards

C. Partial Funding

D. Additional Awards

E. Award Funding and Incremental/Full Funding

F. Period of Performance

G. Funding Type

III. Eligibility Information

A. Eligible Applicants

B. Voluntary Cost Sharing or Matching Funds

C. Threshold Eligibility Criteria

D. Ineligible Costs and Activities

IV. Application and Submission Information

A. How to Register to Apply for Grants Under This Competition

B. Application Process

1. Application Materials

2. Project Narrative Instructions, Format, and Content

C. Partnership and Coalition Coverage

D. Releasing Copies of Applications

V. Application Review Information

A. Evaluation Criteria

B. Review and Selection Process

C. Other Factors

D. Anticipated Announcement and Federal Award Dates

VI. Award Administration Information

A. Award Notices

B. Reporting Requirements

C. Prevailing Wage Requirements

D. Build America, Buy America Requirements

VII. EPA Contacts

Appendix A. Additional Information Regarding Contracts, Subawards, and Participant Support Costs 61

A. Background

B. Contracts

C. Subawards

D. Participant Support Costs

Appendix B. Global Warming Potentials for GHGs

Appendix C. Required Technical Appendix and Optional GHG Emission Reduction Calculations Spreadsheet

E. Overview

F. Technical Appendix

G. GHG Emission Reduction Calculations

Appendix D. Application Submission Checklist

Appendix E. Guidelines for a Memorandum of Agreement for a Coalition

I. Funding Opportunity Description A. Background and Summary

The 2022 Inflation Reduction Act (IRA) established the Climate Pollution Reduction Grants (CPRG) program,1 which provides funds in two distinct but related phases:

1. Planning grants: $250 million for states, U.S. territories,2 municipalities,3 air pollution control agencies, tribes,4 and groups thereof5 to develop plans to reduce greenhouse gases (GHGs).6 The Priority Climate Action Plan (PCAP) is the first deliverable due under the CPRG planning grants.

2. Implementation grants: $4.6 billion for competitive grants to eligible applicants to implement GHG reduction programs, policies, projects, and measures (collectively referred to as “GHG reduction measures,” or “measures”) identified in a PCAP developed under a CPRG planning grant.

This notice of funding opportunity (NOFO) announces the availability of up to $4.3 billion for the CPRG implementation grants general competition. Lead organizations for CPRG planning grants must submit their PCAPs to EPA by the deadline of March 1, 2024, in order for lead organizations and other eligible applicants under this announcement to submit grant applications to fund measures contained in those plans. EPA anticipates awarding approximately 30 to 115 grants ranging between $2 million and $500 million under this general competition. Further detail on award tiers can be found in Table 1 of Section II.B.

A separate NOFO, issued under Funding Opportunity Number EPA-R-OAR-CPRGT-23-09, announces the availability of approximately $300 million for competitive CPRG implementation

1 See IRA section 60114, “Climate Pollution Reduction Grants.”

2 For purposes of the CPRG program, “U.S. territories” means the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.

3 Clean Air Act section 302(f) defines “municipality” as a city, town, borough, county, parish, district, or other public body created by or pursuant to State law. For purposes of awarding the CPRG planning grants to municipalities, EPA used 2020 U.S. Census data for metropolitan statistical areas (MSAs) to identify the country’s most populous metropolitan areas, comprised of municipalities. The general concept of an MSA is that of a core area containing a substantial population nucleus, together with adjacent communities having a high degree of economic and social integration with that core. MSAs contain at least one urbanized area of 50,000 or more population. An MSA may include one or more counties.

4 EPA has determined that based on the exclusion of Alaskan Native Corporations (ANCs) from the definition of “Indian tribe” in section 302(r) of the Clean Air Act that ANCs are not eligible for direct grants from EPA under this program. ANCs may, however, receive “non-coalition member” subawards from eligible CPRG grantees.

5 As of the date of publication of this announcement, CPRG planning grant funding has been or is expected to be awarded to support development of climate action plans for 46 states plus the District of Columbia and Puerto Rico, 79 of the country’s most populous MSAs, more than 200 tribes, and four U.S. territories.

6 For purposes of the CPRG program, greenhouse gases, or GHGs, are defined as carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride (see Clean Air Act section 137 (d)(2)).

https://www.census.gov/data/tables/time-series/demo/popest/2020s-total-metro-and-micro-statistical-areas.html grants exclusively for eligible tribes and territories. While eligible tribes and territories may also apply for grants under this CPRG implementation grants general competition, those interested in the CPRG implementation grant competition for tribes and territories should seek the Funding Opportunity Number EPA-R-OAR-CPRGT-23-09 for more information.

Applications for this implementation grant general competition are due on April 1, 2024.

Entities eligible to apply for an implementation grant under this competition include lead organizations that were direct recipients of CPRG planning grants and other state, municipal, tribal, and territorial entities that seek to implement GHG reduction measures included in an applicable PCAP developed under a CPRG planning grant. Section III.A provides more detail on eligible applicants for this NOFO.

B. Program Goals and Objectives

Recognizing the urgency to address GHG pollution contributing to climate change, the Biden- Harris Administration and Congress established the $5 billion CPRG program as part of the 2022 IRA. EPA takes seriously its responsibility to protect human health and the environment as the United States faces the increasingly harmful impacts of climate change. Across the country, communities are experiencing more deadly wildfires and storm surges, more extreme drought and water scarcity, and dangerous levels of flooding, among other impacts. The Fourth National Climate Assessment found that intense extreme weather and climate-related events, as well as changes in average climate conditions, are expected to continue to damage infrastructure, ecosystems, and social systems that provide essential benefits to communities. If left unchecked, future climate change is expected to further disrupt many areas of life and exacerbate existing challenges to prosperity posed by aging and deteriorating infrastructure, stressed ecosystems, and long-standing inequalities. However, with this challenge comes an opportunity to invest in a cleaner economy that will spur innovation and economic growth while building more equitable, resilient communities.

Accordingly, the CPRG general competition for implementation grants is designed to enable states, municipalities, tribes, and territories to achieve the following goals:

1. Implement ambitious measures that will achieve significant cumulative GHG reductions by 2030 and beyond;

2. Pursue measures that will achieve substantial community benefits (such as reduction of criteria air pollutants (CAPs) and hazardous air pollutants (HAPs)), particularly in low-income and disadvantaged communities;

3. Complement other funding sources to maximize these GHG reductions and community benefits; and,

4. Pursue innovative policies and programs that are replicable and can be “scaled up” across multiple jurisdictions.

The CPRG general competition is also designed to incentivize eligible applicants to apply for funding together as a coalition to implement GHG reduction measures regionally, across multiple municipalities, state boundaries, or even state and tribal boundaries. Details on eligible applicants and coalitions are available in Section III.A.

https://www.globalchange.gov/nca4 https://www.globalchange.gov/nca4

Relationship Between CPRG PCAPs and Implementation Grant Eligibility

Applications for grants under this NOFO must seek funding to implement measures that are included in a PCAP developed with funding from a CPRG planning grant. Implementation grant applications can be submitted not just by the lead organization that received CPRG planning grant funds (“lead organization”), but also by state and territorial agencies, municipalities, air pollution control agencies, and tribes that did not directly receive planning grant funds but that seek funding to implement one or more measures included in an applicable PCAP.

The CPRG planning grant program guidance specified that when developing a PCAP, lead organizations must coordinate and collaborate with other eligible entities within their jurisdictions and ensure that priority measures are included in the plan that are implementable by those entities. In all cases, the lead organizations for CPRG planning grants are required to make their PCAPs available to other entities for their use in developing implementation grant applications, and EPA will publicly post all PCAPs received on the CPRG website.

EPA strongly encourages lead organizations to make draft versions of their PCAPs available as early as possible so that entities considering whether to submit an implementation grant application can begin development of their applications well before the April 1, 2024, application deadline. EPA also encourages eligible applicants that are considering applying for a CPRG implementation grant to participate in the PCAP development process and provide input on priority measures to include in the plan, in collaboration with other participants and stakeholders. EPA will not award multiple grants to implement the same measure in the same location; therefore, communication and coordination between entities that may be considering applying to fund similar measures should occur prior to applications being submitted. See Section III of this NOFO for more details on eligible applicants.

GHG Reduction Measures in CPRG Implementation Grant Applications

EPA encourages eligible applicants to seek implementation funds for GHG reduction measures that will significantly reduce cumulative GHG emissions by 2030 and beyond, and that will accelerate decarbonization across one or more major sectors responsible for GHG emissions (i.e., industry, electric power, transportation, commercial and residential buildings, agriculture/natural and working lands, and waste and materials management). EPA will score grant applications based on multiple evaluation criteria described in Section V.A of this NOFO, with an emphasis on the magnitude of near-term GHG reductions that will be achieved by the proposed measures.

Applications may include one or more proposed GHG reduction measures. A GHG reduction measure may reduce GHG emissions or enhance carbon removal.7 Documentation must be

7 Measures that enhance “carbon removal” are those that increase the removal of carbon dioxide from the https://www.epa.gov/inflation-reduction-act/climate-pollution-reduction-grants provided to support the estimated GHG emission reductions for each proposed measure. In general, EPA anticipates that applications may seek funding for the following types of measures:

• A new, stand-alone GHG reduction measure that will be implemented solely through CPRG funding;

• An expansion of a GHG reduction measure that is already being implemented, where the expansion of the measure will be funded through CPRG funding; and,

• A new GHG reduction measure for which the applicant has already secured partial funding and needs additional funding from the CPRG program to secure the total funding needed to fully implement the measure.

Applications should provide details on each measure as laid out in Section IV.B. Applications will be evaluated as a whole and will not be assessed by individual GHG reduction measures;

therefore, applicants should include only those measures that are eligible and meet the requirements described in this announcement.

EPA expects to receive implementation grant applications covering a broad range of potential GHG reduction measures. Applicants have flexibility to tailor the new or expanded GHG reduction measures included in their applications to the specific plans and needs of their jurisdictions. Applications that successfully address the specific evaluation criteria in Section V will also be consistent with the following program objectives:

• Stimulate transformation toward a decarbonized economy and demonstrate approaches that are replicable to unlock opportunities for even greater emissions reductions;

• Result in benefits (and do not result in negative impacts) to low-income and disadvantaged communities, such as CAP and HAP reductions, equitable economic growth, and improved quality of life outcomes, where applicable;

• Support measures for which dedicated funding or financing from other sources (e.g., under other provisions of the 2022 IRA, the 2021 Bipartisan Infrastructure Law (BIL), the 2021 American Rescue Plan Act (ARP), and the 2021 Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS)) is unavailable or that leverage other sources of public and private funding to the fullest extent possible prior to seeking CPRG funding;

• Achieve GHG emission reductions that are long-lasting and certain;

• Incorporate high labor standards, emphasize job quality, and support equitable workforce development; and,

• Ensure accountability by providing clear assumptions, metrics, timelines, authorities, and budget details.

atmosphere through, for example, the uptake of carbon and storage in soils, vegetation, and forests. Such measures may include actions related to management of lands in their current use, or as lands are converted to other uses.

EPA is partnering with other federal agencies to strategically design funding opportunities and efficiently deploy resources provided by the IRA, BIL, ARP, and CHIPS, among others.

Applications for CPRG implementation grants will be evaluated on the degree to which they demonstrate a strong need for CPRG implementation funding that is unmet by other funding sources. Applicants should explain how they have explored the availability of other federal and state grants, tax incentives, and other funding streams to implement their GHG reduction measure(s) and why these sources are not sufficient (see Section IV.B and criterion 1.b in Section V.A).

GHG Reduction Measure Examples

Drawing on a variety of information – including workplans submitted by CPRG planning grantees, measures highlighted in the CPRG Request for Information, and input received during CPRG stakeholder listening sessions – EPA has prepared the following illustrative list of potential GHG reduction measures for which applicants may choose to seek CPRG implementation grant funding. This list is neither exhaustive nor definitive with respect to the measures that may be included in competitive applications under this NOFO. Applicants should consider the evaluation criteria in Section V.A when deciding on which measure or measures to include in their applications.

Transportation Sector

• Programs to increase the share of electric light-, medium-, and heavy-duty vehicles, and to expand electric vehicle charging infrastructure

• Electrification requirements for state, municipal, territorial, and tribal vehicle, transit, or equipment fleets

• Transportation pricing programs that reduce vehicle miles traveled (VMT), such as parking pricing and congestion and road pricing

• Policies to support transportation management incentive programs to reduce vehicle trips or travel and expand transit use, such as van-pool programs, ridesharing, transit fare subsidies, and bicycle facilities

• New or expanded transportation infrastructure projects to facilitate public transit, micro-mobility, car sharing, bicycle, and pedestrian modes

• Incentive programs to purchase zero-emission vehicles and equipment to replace older heavy-duty diesel vehicles and equipment

• Programs to increase efficiency and reduce GHG emissions at ports and freight terminals, such as vehicle or equipment idle reduction, vessel-speed reduction, equipment electrification, and shore power

• Update building and zoning codes to encourage walkable, bikeable, and transit-oriented development

• Encourage mode shift from private vehicles to walking, biking, and public transportation (e.g., complete streets, bike share programs, bike storage facilities, low-speed electric bicycle subsidies, public transit subsidies)

Electric Power Sector

• Renewable portfolio standards and/or clean electricity standards https://www.regulations.gov/docket/EPA-HQ-OAR-2022-0873

• Energy efficiency portfolio standards

• Emission trading systems (e.g., cap-and-trade programs) and carbon pricing measures

• GHG performance standards for electric generating units

• Installation of renewable energy and energy storage systems on municipal facilities

• Programs to support smart-grid and/or behind-the-meter technologies to reduce power losses, reduce peak demand, and enable consumer participation in distributed generation

• Targeted incentives for installation of renewable energy and energy storage systems on commercial and residential buildings, such as net metering, tax credits, rebates, and streamlined interconnection standards

• Policies and measures to streamline permitting for renewable energy projects

• Development of distributed or community-scale renewable energy generation, microgrids, or vehicle-to-grid infrastructure in disadvantaged communities, including remote and rural regions

Buildings Sector

• Adoption and implementation of the most up-to-date building energy codes or stretch codes for new commercial and residential buildings

• Implementation of a clean heat standard

• Incentive programs for implementation of end-use energy efficiency measures in existing government-owned, commercial, and residential buildings

• Incentive programs for the purchase of certified energy-efficient appliances, heating and cooling equipment, lighting, and building products to replace inefficient products

• Programs and policies to promote electrification of government-owned, commercial, and residential buildings

• Programs and policies to accelerate the incorporation of efficient electric technologies and electric vehicle charging at new single-family, multi-unit, or affordable residential buildings and commercial buildings, including building codes related to electric vehicle charging

• Implementation of a building energy performance management program for government-owned buildings

• Implementation of a new benchmarking and building performance standards

• Programs to promote recovery and destruction of high-global warming potential (GWP) hydrofluorocarbons (HFCs) used in existing appliances, air conditioning systems, and commercial chillers

Industrial Sector

• Standards addressing GHG emissions from industrial facilities and from energy production sectors, including emissions from industrial process heat and industrial processes

• Programs to support or incentivize implementation of energy efficiency measures in industry, including energy audits, strategic energy management, equipment upgrades, and waste heat utilization

• Programs to support or incentivize GHG reductions in industrial energy use and industrial processes, including use of low/no carbon fuels, electrification, renewable energy, and process improvements

• Programs to develop, expand, and support markets for low-embodied carbon materials and products, such as cement and steel

Waste, Water, and Sustainable Materials Management Sector

• Standards and incentives to reduce methane emissions from landfills and wastewater treatment facilities, including through collection for use or destruction

• Programs and incentives to reduce or divert waste (including food and/or yard waste) through improved production practices, improved collection services, and increased reuse or recycling rates

• Programs and incentives to reduce GHG emissions associated with plastics production, use, and waste management

• Programs to expand composting and bio-digestion infrastructure to reduce GHG emissions and increase beneficial use of organic waste

• Policies and programs to reduce construction and demolition waste through building reuse, deconstruction, and material diversion and reuse

• Installation of renewable energy and energy efficiency measures at wastewater treatment facilities

Agricultural Sector

• Incentive programs to fund electric agricultural equipment technologies

• Incentives for technologies and techniques that reduce nitrous oxide emissions from fertilizer application

• Incentives to promote anaerobic digesters to capture methane and generate renewable energy or produce renewable fuel

Carbon Removal Measures

• Policies to promote improved forest management to enhance carbon stocks on forested land

• Urban afforestation and green infrastructure programs and projects

• Restoration of degraded lands (e.g., brownfields, mine reclamation) and forested lands to enhance carbon sequestration

• Policies to enhance carbon stocks in coastal estuaries, such as wetlands and mangroves.

Low-Income and Disadvantaged Communities

Applications for CPRG implementation grants will be evaluated for benefits to low-income and disadvantaged communities (see criterion 4 in Section V.A). For the purposes of this NOFO, EPA defines low-income and disadvantaged communities as any community that meets at least one of the following characteristics:

• Any census tract that is included as disadvantaged in the Climate and Economic Justice https://screeningtool.geoplatform.gov/en/

Screening Tool (CEJST)8;

• Any census block group that is at or above the 90th percentile for any of EJScreen’s

Supplemental Indexes when compared to the nation or relevant state9; or,

• Any geographic area within tribal lands as included in EJScreen.10 (The CPRG program considers that federally recognized tribes meet the definition of disadvantaged communities for the purposes of this grant program.)

EPA recognizes that these areas may include a wide range of communities, such as communities with environmental justice concerns, traditional energy communities, and rural communities.

EPA provides a GIS map layer that combines the CEJST and EJScreen information above to facilitate identification of low-income and disadvantaged communities (as defined for EPA IRA programs). This map layer can be found on the EJScreen website.11 Although some states may have state-specific definitions of low-income and disadvantaged communities, applicants for CPRG implementation grants must use EPA’s definition.

EPA is committed to meeting the objectives of the Justice40 Initiative set forth in Executive Order 14008, which sets the goal that 40 percent of the overall benefits of relevant federal investments flow to disadvantaged communities, which have been or are marginalized, underserved, and overburdened by pollution. Individual applicants do not have to explicitly demonstrate that 40 percent of the benefits of each measure or project will flow to disadvantaged communities. Instead, EPA will conduct an analysis of the GHG emission reduction measures and the benefits to disadvantaged communities resulting from the CPRG program as a whole.

Environmental Justice

EPA is committed to accelerating environmental justice (EJ) in communities overburdened by

8 CEJST has an interactive map and uses datasets that are environmental and socioeconomic indicators of burdens.

Percentiles show how much burden each Census tract experiences compared to other tracts. To qualify as a disadvantaged community in the CEJST, one of the burden indicators must be above the 90th percentile.

9 EJScreen is EPA's environmental justice mapping and screening tool that uses national datasets for environmental and socioeconomic indicators to show how a selected area compares to the state, EPA region, or the nation.

EJScreen operates at a finer geographic scale of Census block groups than the CEJST, allowing EJScreen Supplemental Indexes to identify smaller areas that may be disadvantaged within a larger non-disadvantaged area.

To identify areas in EJScreen that meet one of the above definitions of a low-income or disadvantaged community, applicants should use the “Supplemental Indices” option under the tool’s map layers.

10 The Tribal Lands category in EJScreen to use for this purpose includes Alaska Native Allotments (EPA Metadata Record), Alaska Native Villages (EPA Metadata Record), American Indian Reservations (EPA Metadata Record), American Indian Off-reservation Trust Lands (EPA Metadata Record), and Oklahoma Tribal Statistical Areas (EPA Metadata Record).

11 The EJScreen mapping tool is available at: https://ejscreen.epa.gov/mapper/. To locate the map layer displaying areas that meet the EPA definition of low-income and disadvantaged communities, go to the “Places” Tab, then select “Justice40/IRA” from the drop-down menu, and then select “EPA IRA Disadvantaged Communities.” At the time of release of this NOFO, EJScreen version 2.2 was the current version.

https://screeningtool.geoplatform.gov/en/ https://www.epa.gov/ejscreen https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/ https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/ https://www.epa.gov/ejscreen/ej-and-supplemental-indexes-ejscreen https://www.epa.gov/ejscreen/ej-and-supplemental-indexes-ejscreen https://ejscreen.epa.gov/mapper/ pollution through its IRA investments, including through the CPRG program. This program is responsive to the Administration’s call for agencies to advance EJ in Executive Order 14096:

Revitalizing Our Nation's Commitment to Environmental Justice for All.

C. Environmental Results and Strategic Plan Information

Pursuant to Section 6.a of EPA Order 5700.7A1, “Environmental Results under EPA Assistance Agreements,” EPA must align proposed grant programs and assistance agreements with the Agency’s Strategic Plan. EPA also requires that grant applicants and recipients adequately describe environmental outputs and outcomes to be achieved under assistance agreements.

Applicants must include specific statements describing the environmental results of the proposed project in terms of well-defined outputs and, to the maximum extent practicable, well-defined outcomes that will demonstrate how the project will contribute to the Strategic Plan goals listed below. EPA will evaluate “outputs and outcomes” under criterion 3 in Section V. More guidance on outputs and outcomes is provided in Section IV.B.

(1) Linkage to EPA Strategic Plan: The activities to be funded under this announcement must support EPA’s Fiscal Year (FY) 2022-2026 Strategic Plan. Awards made under this announcement will support Goal 1, “Tackle the Climate Crisis”; Objective 1.1, “Reduce Emissions that Cause Climate Change.” Under this objective, EPA will “aggressively reduce the emissions of greenhouse gases from all sectors while increasing energy and resource efficiency and the use of renewable energy.” All applications must be for projects that support this goal and objective. For more information see EPA’s FY 2022 – 2026 EPA Strategic Plan.

(2) Outputs: The term “output” means an environmental activity, effort, and/or associated work product related to an environmental goal and objective that will be produced or provided over a period of time or by a specified date. Outputs may be quantitative or qualitative but must be able to be assessed during an assistance agreement funding period.

Examples of outputs from the implementation of GHG reduction measures funded under this announcement may include, but are not limited to:

• Number of: equipment or technology installations, such as zero-emission vehicles;

renewable energy installations and smart meters; electrified appliances (e.g., heat pumps) installed; buildings retrofitted; industrial equipment electrified; biodigesters installed; trees planted;

• Policies and measures enacted, adopted, and/or expanded, and related procedural milestones in implementing GHG reduction measures; and/or,

• Staff hired to implement GHG reduction measures, associated low-income and disadvantaged community provisions, and associated trainings for workforce development.

Progress reports and a final report will also be required outputs, as specified in Section VI.B.

https://www.federalregister.gov/documents/2023/04/26/2023-08955/revitalizing-our-nations-commitment-to-environmental-justice-for-all https://www.epa.gov/sites/default/files/2015-03/documents/epa_order_5700_7a1.pdf https://www.epa.gov/sites/default/files/2015-03/documents/epa_order_5700_7a1.pdf https://www.epa.gov/planandbudget/strategicplan

(3) Outcomes: The term “outcome” means the result, effect, or consequence that will occur from carrying out an environmental program or activity that is related to an environmental or programmatic goal or objective. Outcomes may be environmental, behavioral, health-related, or programmatic in nature but must also be quantifiable. They may not necessarily be achievable within a grant funding period.

At a minimum, the application should list the following outcomes from the GHG reduction measures proposed for CPRG implementation grant funding:

• Reduction in cumulative metric tons of GHG emissions:

o From 2025 through calendar year 2030, and o From 2025 through calendar year 2050.

If applicable, the application should also list the following outcomes from the GHG reduction measures proposed for CPRG grant funding:

• Reduction in annual amount of CAP and/or HAP emissions in 2030, and

• Reduction in annual amount of CAP and/or HAP emissions in low-income and disadvantaged communities in 2030.

Other potential outcomes may include, but are not limited to:

• Lower energy demand and residential/commercial energy expenditures;

• Reduced energy bills for residents in low-income and disadvantaged communities, and throughout the applicant’s jurisdiction;

• Reduced exposure to hazardous air pollution or unhealthy ambient air quality;

• Increased staff capacity to implement GHG reduction measures;

• Enhanced level of community engagement, as measured by an increased number of ongoing actions to engage with organizations and residents of disadvantaged communities, and other interested parties;

• Number of high-quality jobs created throughout the applicant’s jurisdiction and in low-income and disadvantaged communities; and/or,

• Increased resilience to climate change impacts as measured by the number of buildings or Census tracts that meet certain resiliency standards.12

D. Statutory Authority

The IRA (Public Law 117-169) amended the Clean Air Act (CAA) (42 U.S.C. § 7401 et seq.) to include section 137 (42 U.S.C. § 7437), which authorizes EPA to make grants for greenhouse gas

12 The U.S. Climate Resilience Toolkit defines climate resilience as “the capacity of a community, business, or natural environment to prevent, withstand, respond to, and recover from a disruption.” To find EPA resources for local governments on climate resilience, including strategies, tools, and case studies, visit the Climate Change Adaptation Resource Center (ARC-X).

https://toolkit.climate.gov/content/glossary https://www.epa.gov/arc-x https://www.epa.gov/arc-x https://www.epa.gov/arc-x air pollution reduction plans and implementation activities. CAA section 137(a)(1) appropriates $250 million to EPA to award climate pollution planning grants to eligible entities comprised of states, air pollution control agencies, municipalities, tribes, or a group of one or more of these entities. CAA sections 137(a)(2) and (c) appropriate $4.75 billion (less three percent to EPA for administrative costs) to EPA to make competitive grants to states, air pollution control agencies, municipalities, tribes, or a group of one or more of these entities to implement the programs, policies, measures, and projects developed under a climate pollution planning grant.

CAA section 137 also requires that implementation grant applicants address the degree to which a grant application would reduce GHG emissions in total and with respect to low-income and disadvantaged communities. CAA section 137(d)(2) defines “greenhouse gas” as the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.

E. Additional Provisions for Applicants Incorporated into the Solicitation

Additional provisions that apply to Sections III, IV, V, and VI, and/or awards made under this solicitation can be found at EPA Solicitation Clauses. These provisions are important for applying to this solicitation and applicants must review them when preparing applications for this solicitation. They include requirements and restrictions applicable to all EPA grant funding.

If an applicant is unable to access these provisions electronically at the website above, please contact the EPA point of contact listed in Section VII of this solicitation to obtain a copy of the provisions.

II. Federal Award Information A. Amount of Funding Available

The total funding expected to be available for awards under the CPRG implementation grants general competition is approximately $4.3 billion. Funding is dependent upon Agency appropriations, funding availability, Agency priorities, and other applicable considerations. EPA has issued a separate NOFO under Funding Opportunity Number EPA-R-OAR-CPRGT-23-09 for a competition reserved exclusively for eligible tribes and territories. Eligible tribes and territories may also apply for grants under this CPRG implementation grants general competition.

B. Number and Amount of Awards

EPA anticipates awarding a total of approximately 30 to 115 grants under this announcement subject to the availability of funds, the quantity and quality of applications received, Agency priorities, and other applicable considerations. Awards are expected to range between $2 million and $500 million. EPA expects to award grants within five tiers described in Table 1 with funds targeted for each tier. EPA has established these tiers to provide funding opportunities for a range of potential applicants. These ranges reflect differences in the scope, scale, and cost of GHG reduction measures and are intended to help applicants structure their applications to best reflect the cost of their proposed measures and their ability to implement the grant. The total grant amount requested in an application will determine the tier within which the http://www.epa.gov/grants/epa-solicitation-clauses application will be evaluated. Applications will be evaluated against other applications within the same tier.

Table 1: Grants Ranges and Funding by Tier

Tier

Grant Ranges Funds Targeted for

Each Tier

Anticipated Number of Grants to be Awarded Tier A $200,000,000 – $500,000,000 $2 billion 4-10 Tier B $100,000,000 – $199,999,999 $1.3 billion 6-13 Tier C $50,000,000 – $99,999,999 $0.6 billion 6-12 Tier D $10,000,000 – $49,999,999 $0.3 billion 6-30 Tier E $2,000,000 – $9,999,999 $0.1 billion 10-50

The actual award amounts, total amount of funding, and number of awards made under each of the tiers described in this section may differ from the estimated amounts for many reasons including but not limited to the number of meritorious applications received in each tier, Agency priorities, and funding availability. In addition, EPA reserves the right to increase or decrease (including decreasing to zero) the total dollar amount for awards under each tier.

C. Partial Funding

In appropriate circumstances, EPA reserves the right to partially fund applications by funding discrete portions or phases of proposed GHG reduction measures in overall applications. If EPA decides to partially fund an application, it will do so in a manner that does not prejudice any applicants or affect the basis upon which the application, or portion thereof, was evaluated and selected for award, thereby maintaining the integrity of the competition and selection process.

D. Additional Awards

EPA reserves the right to make additional awards under this solicitation, consistent with Agency policy and guidance, if additional funding remains or becomes available after the original selections are made. EPA intends that any additional selections for awards may be made no later than six months after the original selection decisions. In addition, EPA reserves the right to reject all applications and make no awards under this announcement or to make fewer awards than anticipated.

E. Award Funding and Incremental/Full Funding

Awards will be fully funded at the start of the grant period. EPA award recipients may incur allowable costs 90 calendar days before EPA makes the award. Pre-award expenses more than 90 calendar days prior to the date of award require prior approval by EPA. All costs incurred before EPA makes the award are at the applicant’s risk. EPA is under no obligation to reimburse such costs if for any reason the applicant does not receive a federal award, or if the federal award is less than anticipated and inadequate to cover such costs. See 2 CFR 1500.9.

https://www.ecfr.gov/current/title-2/subtitle-B/chapter-XV/part-1500/subpart-D/subject-group-ECFRafb95c49532a236/section-1500.9

F. Period of Performance

The estimated period of performance for awards resulting from this solicitation will be up to five years. The estimated project start date for awards is October 1, 2024.

G. Funding Type

Successful applicants will be awarded funding as a grant.

III. Eligibility Information Note: Additional provisions that apply to this section can be found at EPA Solicitation Clauses.

A. Eligible Applicants

Section 137(c)(1) of the CAA states that CPRG implementation grants shall be awarded to eligible entities to implement plans developed under CPRG planning grants. The eligible entities under this competition are consistent with assistance listing 66.046 and CAA section 137.

Table 2 describes the eligible applicants for the CPRG implementation grants competition under this NOFO. In general, entities eligible to apply for an implementation grant under this announcement are states, municipalities, air pollution control agencies, tribes,13 territories, and groups thereof. More specifically, states, municipalities, tribes, and territories that directly received a CPRG planning grant are eligible to apply for an implementation grant. In addition, municipalities, air pollution control agencies, and tribes that did not directly receive a planning grant but that seek funding to implement one or more GHG reduction measures that are included in an applicable PCAP (submitted to EPA by March 1, 2024) are eligible to apply. An applicable PCAP is one that geographically covers the entity and contains GHG reduction measures that can be implemented by the entity.

Table 2. Entities Eligible to Apply for CPRG Implementation Grants

13 EPA has determined that based on the exclusion of…