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Schumer-Manchin Deal Includes $62 Billion In New Grants

Schumer-Manchin Deal Includes $62 Billion In New Grants

Shortly after GrantExec launched its federal grants dashboard, Senators Chuck Schumer and Joe Manchin reached an agreement on a $433 billion climate, tax, and health care bill dubbed the Inflation Reduction Act of 2022.

Notably, the legislation includes significant investments in energy security and climate changeโ€” much of it in the form of federal grants. While the bill's future is uncertain, Senator Schumer and his colleagues plan to remain in Washington through the weekend if necessary to pass the legislation.

What could this mean for grantseekers? We analyzed the 725-page text to find out.

We identified approximately $62 billion in grant opportunities from the proposed $369 billion in new energy and climate investments over the next five years. Grantseekers can expect Funding Opportunity Announcements to be posted within six to nine months after the bill becomes law. Six federal agencies will disseminate the grants:

  • Department of Agriculture

  • Department of Energy

  • Department of Housing and Urban Development

  • Department of the Interior

  • Department of Transportation

  • Environmental Protection Agency

  • National Oceanic and Atmospheric Administration (Department of Commerce)

Nearly 40% of total grant funding ($23 billion) will fund projects that promote environmental justice, including efforts to implement zero-emissions technology in underserved communities. The bill also includes significant funding opportunities for projects relating to industrial technology, sustainable transportation and residential infrastructure, environmental justice, sustainable farming practices, production of electric vehicles, biofuel and low-embodied carbon technology, aviation, forest protection, and more. These grants will be available to for-profit businesses, nonprofits, and government agencies.

The bottom line: If passed, the Inflation Reduction Act of 2022 would direct cabinet secretaries to create hundreds of new grants worth up to $62 billion over the next five years. That said, the bill is yet to be approved by the Senate Parliamentarian. Republican leaders have announced their intent to insert amendments to the legislation, which may alter the bill's final spending numbers. GrantExec will continue to monitor the bill's progress and report on any relevant changes.


Here's our full breakdown of the grants of the Inflation Reduction Act:

Details

ENVIRONMENTAL JUSTICE & CLIMATE RESILIENCE: $22,974,000,000

$2.8 billion to nonprofits that benefit disadvantaged communities:

  • Investments in low or zero-emission technologies and infrastructure, including workforce development in the green energy sector.

  • Community-led pollution monitoring, prevention, and remediation.

  • Mitigation of climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfire events.

  • Development and implementation of climate resilience and adaptation projects.

  • Reduction of indoor toxins and air pollution.

  • Engagement of disadvantaged communities in public decisions through advisory groups and rulemakings.

$23.5 million in grants and contracts for climate resilience activities to support Native Hawaiian communities.

$121 million in grants and contracts to rebuild and restore National Wildlife Refuge System habitats through:

  • Studying invasive species.

  • Improving the resiliency of and reducing the damage caused by climate-induced weather events.

ZERO-EMISSIONS TECH IN LOW-INCOME COMMUNITIES: $20,030,000,000

  • $11.97 billion in grants to support the rapid deployment of low and zero-emission technologies.

  • $8 billion in grants for projects to provide financial and technical assistance to low-income communities.

  • $60 million in general support to identify and reduce diesel emissions in low-income communities.

Details

TRANSPORTATION & INFRASTRUCTURE: $3,760,000,000

  • $760 million to develop a covered interstate electric transmission line.

  • $3 billion* to improve local transportation access and safety, including projects to:

    • Improve the walkability, safety, and affordability of local transportation

    • Retrofit or replace outdated surface transportation infrastructure

    • Build or improve complete streets, multi-use trails, regional greenways, and active transportation networks.

    • Provide affordable access to essential services and destinations.

    • Address and remediate negative consequences of inconvenient infrastructure in disadvantaged communities through the construction of:

      • Noise barriers

      • Technology to reduce transportation-related air pollution

      • Stormwater management systems

      • Infrastructure to mitigate โ€œurban heat island hot spotsโ€ within and around transportation facilities

      • Safety improvements for drivers and pedestrians

      • Improve air, heat, and water quality monitoring systems for underserved communities

    • *$1.1 billion is reserved for economically disadvantaged communities.

Details

FORESTRY: $2,755,000,000

  • $150 million for climate mitigation and forest resilience practices.

  • $150 million for underserved forest landowners in emerging markets.

  • $100 million for small forest landowners (fewer than 2,500 acres) in emerging markets.

  • $50 million for carbon sequestration on private forest land.

  • $100 million for wood innovation grants, including the construction of new wood innovation facilities and mechanisms to transport hazardous fuels.

  • Each grant is worth up to $5,000,000 with a cost-sharing requirement between 20-50%, though the Secretary of Agriculture may waive the requirement.

  • $700 million through the Forest Legacy Program to support land acquisition for carbon sequestration or to benefit underserved communities.

  • $1.5 billion for tree planting, particularly to benefit underserved communities.

Details

AVIATION: $291,000,000

  • $244.5 million for the production, transportation, blending, and storage of sustainable aviation fuel.

  • $46.5 million for low-emission aviation research and development.

Details

AIR POLLUTION: $16,093,000,000

PORTS:

  • $2.25 billion in grants and rebates to purchase or install zero-emission technology at ports and $750 million specifically to ports located in non-attainment areas (locations considered to have air quality worse than the National Ambient Air Quality Standards).

  • $7 billion in pass-through grants from state and local governments to low-income communities to access zero-emissions technologies.

GREENHOUSE GAS REDUCTION:

  • $850 million in general support to reduce methane and other greenhouse gas emissions.

  • $250 million to develop greenhouse gas air pollution reduction plans.

  • $4.75 billion to execute the greenhouse gas air pollution reduction plans.

MONITORING:

  • $117.5 million to monitor toxic air pollutants.

  • $50 million to update and expand the national ambient air quality monitoring network.

  • $3 million to โ€œdeploy, integrate, and operate air quality sensors in low-income and disadvantaged communities.โ€

  • $15 million to address emissions from wood heaters.

  • $20 million to monitor methane emissions.

SCHOOLS: $37.5 million to monitor and reduce air pollution at schools in disadvantaged communities.

Details

MORE FROM THE EPA: $268,000,000

  • $15 million for reclamation and destruction technologies as part of the American Innovation and Manufacturing Act.

  • $3 million to states, tribes, and air pollution control agencies to improve communication with the EPAโ€™s Integrated Compliance Information System.

  • $250 million in grants and technical assistance to support the development of environmental product declarations for construction materials and products.

The bill also proposes new grant opportunities in:

  • RENEWABLES: $313,817,500 available through 2031 to develop underutilized renewable energy technologies in rural areas.

  • CARBON: $2 billion in reimbursements or incentives for using low-embodied carbon construction materials in projects for the Federal Highway Administration.

  • FARMING: $1,721,632,500 available through 2031 to fund projects under the Farm Security and Rural Investment act. Each grant comes with a 50% cost share requirement.

  • ELECTRIC VEHICLES: $2 billion in grants for the domestic production of efficient hybrid and electric vehicles.

  • INDUSTRIAL TECH: $5.8 billion to implement advanced industrial technology in facilities that produce iron, steel, concrete, glass, pulp, paper, chemicals, and other energy-intensive industrial processes.

  • HOUSING: $4 billion in grants and loans to fund energy and water efficiency, indoor air quality, and the implementation of low-emission technology at eligible properties. Notably, HUD may convert loans provided in this program into grants if the recipient agrees to maintain affordable rates for tenants for an extended period.

  • WATER ACCESS: $550 million in grants, contracts, and financial assistance for water projects in disadvantaged communities to improve access to domestic water supplies.


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