Inflation Reduction Act’s Impact on Facility and Transportation Heavy Nonprofit Organizations
The Inflation Reduction Act (IRA) provides many nonprofit organizations with additional grant opportunities, especially those facility-intensive and transportation-reliant nonprofit organizations. Below are two of the most heavily funded opportunities in the new legislation.
Greenhouse Gas Reduction Fund
Purpose: Provide catalytic capital to support the deployment of low- to zero-emission technologies and provide financial assistance to qualified projects that reduce or avoid greenhouse gas emissions and other forms of air pollution, including solar and other distributed resources. Eligible recipients shall provide financial assistance to qualified projects at the national, tribal, regional, state, and local levels.
Governing Agency: The Environmental Protection Agency
Maturity: Funding to remain available until September 30, 2024.
Funding: $20 billion in competitive grants to nonprofits, of which greater than $8 billion is to be made available to low-income and disadvantaged communities. There will be an additional $7 billion available to state, local, and tribal organizations focused on low-income and disadvantaged communities.
Impacted Nonprofits: According to the text of the IRA, nonprofit organizations impacted include those “that 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.” This includes renewable energy organizations, associations, social services, nonprofit green banks at the city and state level, and community development financial institutions (CDFIs).
Clean Heavy-Duty Vehicles
Purpose: Replace certain heavy-duty vehicles, such as refuse trucks, logistics trucks, drayage vehicles, transit and school buses, and other delivery vans, with those that are more environmentally friendly. This also includes funding for improving the associated infrastructure and workforce development and training to deploy zero-emission vehicles.
Governing Agency: The Environmental Protection Agency
Maturity: Funding to remain available until September 30, 2031.
Funding: $1 billion, of which $400 million is to be awarded to those that serve one or more areas of poor air quality (i.e., non-attainment area).
Impacted Nonprofits: Nonprofit organizations that rely on the use of Class 6 or Class 7 heavy-duty vehicles under section 1037.801 of title 40, Code of Federal Regulations.
Interested in learning more about the IRA? Check out the below content to learn more about the Act and what is next for nonprofits.
Inflation Reduction Act Signed into Law: Climate, Health Care, and Tax
The Inflation Reduction Act Is Official – What’s Next for Nonprofits?
Inflation Reduction Act and its Impact on Environmental Advocates
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