EPA Announces $2 Billion in Funding for Environmental and Climate Justice Community Change Grants

On November 21, 2023, EPA’s Office of Environmental Justice and External Civil Rights (OEJECR) announced a Notice of Funding Opportunity (NOFO) for $2 billion in funding for Environmental and Climate Justice Community Change Grants. These grants are the single largest investment in environmental justice in history, and 100% of benefits and funds will go directly to disadvantaged, marginalized, and over-polluted communities to support projects relating to improving climate resiliency; reducing indoor toxics and indoor air pollution; investing in low- and zero-emission technologies and related infrastructure; supporting community-led pollution monitoring, prevention, and remediation; supporting workforce development implementing GHG reductions; and mitigating climate and health risks from urban heat islands, extreme heat, wood heater emissions, wildfires, and other extreme weather, among other project areas. An additional $200 million of IRA funding is dedicated to providing technical assistance to applicants and grant recipients, which enhances the ability of disadvantaged communities to access resources for environmental and climate justice activities.

IRA section 60201 amends the Clean Air Act by adding a new Section 138 on “environmental and climate justice block grants.” Section 138 of the Clean Air Act appropriates $2.8 billion to the EPA Administrator to award grants to community-based nonprofit organizations as well as partnerships between those organizations and Indian tribes, local governments, and institutions of higher education. Section 138 of the Clean Air Act also appropriates an additional $200 million to the EPA administrator provide technical assistance to entities receiving the grants described above.

The NOFO will be open for a year and closes November 21, 2024, although applicants are encouraged to apply as early as possible. EPA will be reviewing applications on a rolling basis, allowing applicants to utilize the available technical assistance and possibly resubmit a new application if not initially chosen. Applications can be submitted under one of two tracks: Track I, Community-Driven Investments for Change, is expected to award approximately $1.96 billion for 150 projects ranging from $10 to 20 million each; whereas Track II, Meaningful Engagement for Equitable Governance, is expected to award approximately $40 million for 20 projects from $1 to 3 million each. Track I applicants may be invited to participate in an oral presentation with EPA, offering a more accessible way to engage with the agency and speak about community priorities, desired outcomes, and plans for long-term sustainability.

EPA also has identified five Target Investment Areas (TIAs) so that communities with unique geographies, circumstances, and needs can equitably complete for funding. Areas and associated funding include Tribes generally ($300 million), Tribes in Alaska ($150 million), Territories ($50 million), Disadvantaged Unincorporated Communities (e.g. Colonias or other small and rural areas lacking fixed, legally determined boundaries) ($50 million), and disadvantaged U.S.-Southern Border Communities that are non-Tribal and within 100 km north of the U.S. Mexico border ($100 million).