Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions (2024)

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APPENDIX J Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities Table J-1 displays the wide array of provisions in the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) directing funds, opportunities, and requirements toward subnational entities, and capacity and resource dimensions that funding agencies, applicants, and recipients will need to consider. 793 A00026--Accelerating Decarbonization in the United States_APPJ.indd 793 3/30/24 4:08 PM 

TABLE J-1  Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) Provisions, Amount of Funding Available, 794 Federal Agency Responsible for Implementation, Opportunities or Requirements for Subnational Entities, and Capacity and Resource Considerations Amount Opportunities/Requirements for Capacity and Resource Section(s) Name ($ billion) Federal Agency Subnational Entities Considerations Infrastructure Investment and Jobs Act 40101(c), Grid Resilience 10.500 Department of Subnational and tribal agencies are eligible for Recipients must compete 40103(b), 40107 and Innovation Energy (DOE) $3 billion in Smart Grid grants or $5 billion in grid for funds. Partnerships innovation financial assistance (DOE-GD 2023b). 40101(d) Preventing Outages 0.459 DOE State and tribal governments are eligible for grants and Enhancing the to undertake strategic planning, community A00026--Accelerating Decarbonization in the United States_APPJ.indd 794 Resilience of the engagement, and investments to improve grid Electric Grid resilience to all hazards (DOE-GD 2022). 40104, 40108, U.S. State Energy 0.500 DOE State and Territory Energy Offices receive formula Allocated on a formula 40109 Program funding for clean energy, energy security, demand basis to all states and response, and collaborative transmission siting territories. planning and activities (DOE-SCEP 2023f ). 40314 Regional Clean 8.000 DOE Subnational and tribal governments can be potential Recipients must compete Hydrogen Hubs partners in the hubs, which will include hydrogen for funds. producers, potential consumers, connective infrastructure, and communities (DOE-OCED 2023). 40431 Utility Electric 0.000 Federal Energy Each state regulatory authority and each Entities with existing EV rates Vehicle (EV) Regulatory nonregulated utility is required to consider are exempt. Legislation does Promotion Commission measures to promote greater transportation not provide any funding to Measures (FERC) electrification by amending rates (DOE-EERE 2023). states. 3/30/24 4:08 PM 

40502 Energy Efficiency 0.250 DOE State and Territory Energy Offices can receive grants Distributed to all states Revolving Loan to establish a revolving loan fund for residential based on a formula Fund Capitalization and commercial energy efficiency loans and audits allocation, with additional (DOE 2022a). funding to “priority states” with high per-capita energy consumption or carbon dioxide emissions. 40503 Energy Auditor 0.040 DOE State and Territory Energy Offices can receive grants Recipients must compete Training Grant to support energy auditor training and education for funds. Program (DOE-SCEP 2023b). 40511 Resilient and 0.225 DOE State Energy Offices, Tribal Energy Offices, and Recipients must compete A00026--Accelerating Decarbonization in the United States_APPJ.indd 795 Efficient Codes partnerships among local code, construction, for funds. Implementation and energy efficiency entities are eligible for grants supporting building energy codes updates (DOE-EERE 2022). 40541 Energy 0.500 DOE Local educational agencies can access grants to Recipients must compete Improvements make clean energy improvements in K–12 public for funds. at Public School schools, with an emphasis on the highest-needs Facilities districts (DOE-SCEP 2023c). 40551 Weatherization 3.500 DOE State weatherization agencies received expanded Up to 15% of a grant may Assistance Program formula funding to conduct low-income home be used for administrative energy efficiency and weatherization programs purposes. (DOE 2022b). 40552 Energy Efficiency 0.550 DOE States and localities receive formula funding Portion of funds are and Conservation for energy efficiency, renewable energy, clean reserved for competitive Block Grant transportation, and financing projects and planning program for lesser- Program (DOE-SCEP 2023a). populated localities and tribes. continued 795 3/30/24 4:08 PM 

TABLE J-1  Continued 796 Amount Opportunities/Requirements for Capacity and Resource Section(s) Name ($ billion) Federal Agency Subnational Entities Considerations Division J National 5.000 Department of States, Washington, DC, and Puerto Rico can receive Funds available as both Electric Vehicle Transportation assistance to strategically deploy EV charging formula and discretionary Infrastructure (DOT) infrastructure to establish an interconnected funds. Formula Program network (DOT 2022). Inflation Reduction Act 13101, 13102, Various tax credits DOT Tax-exempt organizations, such as state and local 13103, 13104, governments, are eligible for direct pay of tax 13105, 13204, incentives (White House 2022). A00026--Accelerating Decarbonization in the United States_APPJ.indd 796 13403, 13404, 13501, 13701, 13702, 13702(h), 13704 22001 Electric Loans for 1.000 Department Subnational and tribal governments are eligible Up to 50% non-federal Renewable Energy of Agriculture to receive loans and loan guarantees for the cost share required (USDA) construction of electric distribution, transmission, but may be waived by and generation facilities (White House 2022). Secretary. 22007 Increasing Land 0.250 USDA Local and tribal governments, community- Access Program development financial institutions, and nonprofit education partners can receive grants for projects that improve land access for underserved farmers, ranchers, and forest landowners (White House 2022). 23003(a)(2) Urban and 1.500 USDA Subnational and tribal agencies can receive grants Up to 50% non-federal Community for tree-planting activities (White House 2022). cost share required Forestry Assistance but may be waived by Program Secretary. 3/30/24 4:08 PM 

40001 Investing in Coastal 2.600 Department of Coastal states, tribal governments, and local Communities and Commerce governments can receive financial or technical Climate Resilience assistance to support coastal resilience (White House 2022). 40007(a)(1) Fueling Aviation’s 0.245 Federal Aviation Subnational and tribal governments can receive Between 10%–25% Sustainable Administration funding for projects relating to sustainable aviation non-federal cost share Transition Through (FAA) fuel (White House 2022). required. Sustainable Aviation Fuels 40007(a)(2) Fueling Aviation’s 0.047 FAA Subnational and tribal governments can receive Between 10%–25% Sustainable funding for projects relating to low-emission non-federal cost share A00026--Accelerating Decarbonization in the United States_APPJ.indd 797 Transition— aviation technologies (White House 2022). required. Technology 50121, 50122 Home Energy 8.800 DOE State Energy Offices can receive grants to develop Non-federal cost share Rebates—Home whole-house and/or high-efficiency electric home of 20%–50% required Efficiency, rebates. Tribes are eligible for the electric home depending on household Electrification, and rebate program (DOE-SCEP 2023d). income level and/or Appliance Rebates price of appliance. 20% of Electric Home Rebate Program allocations can be used for planning, administration, or technical assistance. 50123 State-Based 0.200 DOE States can receive financial assistance to develop Home Efficiency and implement training programs for contractors Contractor Training involved in the installation of home energy Grants efficiency and electrification improvements (DOE- SCEP 2023e). continued 797 3/30/24 4:08 PM 

TABLE J-1  Continued 798 Amount Opportunities/Requirements for Capacity and Resource Section(s) Name ($ billion) Federal Agency Subnational Entities Considerations 50131 Assistance for Latest 1.000 DOE State and local governments with building code and Zero Building adoption authority can receive grants to adopt Energy Code updated building energy codes (White House 2022). Adoption 50141 Energy Loan 3.600 DOE Subnational and tribal governments, school Programs Office districts, housing authorities, and nonprofits are among the eligible recipients to receive loan guarantees for Innovative Clean Energy technologies, including fossil energy, nuclear A00026--Accelerating Decarbonization in the United States_APPJ.indd 798 energy, critical minerals processing, manufacturing, and recycling (White House 2022). 50144 Energy 5.000 DOE Subnational governments are anticipated to be Infrastructure among the eligible recipients of loan guarantees for Reinvestment projects that retool, repower, repurpose, or replace Financing energy infrastructure (White House 2022). 50145 Tribal Energy Loan 0.075 DOE Tribal governments and economic development Guarantee Program organizations can receive direct loans or partial loan guarantees for a broad range of energy resources, products, and services (White House 2022). 50152 Siting of Interstate 0.760 DOE Transmission siting authorities or other state, At least 50% non-federal Electricity local, or tribal government entities are eligible for cost share required for Transmission Lines grants to facilitate siting of transmission projects grants to siting authorities. and economic development activities in impacted communities (DOE-GD 2023a). 3/30/24 4:08 PM 

50241 Climate Change 0.015 Department of Territorial governments can receive technical Funds will support Technical Assistance the Interior (DOI) assistance for climate planning, mitigation, technical assistance, for Territories adaptation, and resilience (White House 2022). but not direct financial assistance. 60101 Clean Heavy-Duty 1.000 Environmental Subnational and tribal governments and school Recipients must compete Vehicles Protection transportation associations can receive grants for funds. Agency (EPA) and rebates to offset the incremental costs of zero-emission vehicles, infrastructure, workforce development and training, and planning and technical assistance (White House 2022). 60103 Greenhouse Gas 27.000 EPA States, municipalities, and tribal governments are Recipients must compete A00026--Accelerating Decarbonization in the United States_APPJ.indd 799 Reduction Fund directly eligible for $7 billion program to provide for funds. financial and technical assistance to low-income and disadvantaged communities to deploy zero- emission technologies. Green banks, community development financial institutions, credit unions, housing agencies, and others are eligible for the $20 billion General and Low-Income Assistance Competition (EPA 2023). 60104 Diesel Emissions 0.060 EPA Subnational and tribal agencies and port Reductions authorities can receive grants, rebates, and loans to reduce diesel emissions resulting from goods movement facilities and services in low-income and disadvantaged communities (White House 2022). 60105 Funding to Address 0.236 EPA Subnational and tribal agencies can receive grants Air Pollution and technical assistance across a variety of topic areas: Clean Air Act planning and implementation, mobile source, fenceline air monitoring, multipollutant monitoring, air quality sensors, 799 methane monitoring (White House 2022). continued 3/30/24 4:08 PM 

TABLE J-1  Continued 800 Amount Opportunities/Requirements for Capacity and Resource Section(s) Name ($ billion) Federal Agency Subnational Entities Considerations 60106 Funding to Address 0.050 EPA Subnational and tribal governments can receive Recipients must compete Air Pollution at grants and technical assistance to monitor and for funds. Schools reduce pollution and greenhouse gases (GHGs) in schools in low-income and disadvantaged communities (White House 2022). 60109 Implementation 0.039 EPA Subnational governments can receive grants to Recipients must compete of the American phase down the production and consumption of for funds. Innovation and hydrofluorocarbons (HFCs) (White House 2022). Manufacturing Act A00026--Accelerating Decarbonization in the United States_APPJ.indd 800 60113 Methane Emissions 1.550 EPA Subnational and tribal governments are eligible Reduction Program to receive grants, rebates, or contracts to reduce methane or other GHGs from petroleum and natural gas systems (White House 2022). 60114 Climate Pollution 5.000 EPA Subnational and tribal governments are eligible to Initial $250 million Reduction Grants receive grants to develop and implement plans for for planning grants reducing GHG air pollution (White House 2022). and remaining $4.75 billion for competitive implementation grants. 60201 Environmental and 3.000 EPA Tribal and local governments can partner with Most recipients must Climate Justice community-based nonprofits to receive grants and compete for grants. Block Grants technical assistance to reduce indoor and outdoor air pollution (White House 2022). 3/30/24 4:08 PM 

60501 Neighborhood 3.205 DOT Subnational and tribal governments and special- Recipients must compete Access and Equity purpose districts for projects that improve for funds. Grants can Grant Program walkability and transportation access (White House be used for planning 2022). and capacity-building in disadvantaged communities. Non-federal cost of 20% required expect in disadvantaged communities. 60506 Low-Carbon 2.000 DOT Subnational and tribal governments and special- Transportation purpose districts can receive reimbursements or Materials Program incentives for the use of low-embodied carbon A00026--Accelerating Decarbonization in the United States_APPJ.indd 801 construction materials and products in federally funded highway projects (White House 2022). 80001 Tribal Climate 0.235 DOI Tribes can receive financial assistance to support Resilience climate resilience planning, habitat restoration and adaptation, community-directed relocation, fish hatchery operations, and other activities (White House 2022). 80002 Native Hawaiian 0.025 DOI State, local, and Native Hawaiian Community Climate Resilience representatives can receive financial assistance to develop and implement a new Native Hawaii Climate Resilience Program (White House 2022). 80003 Tribal Electrification 0.150 DOI Tribes can receive financial and technical assistance May also come in the form Program to increase the number of homes with zero-emission of direct federal spending. electricity (White House 2022). 801 3/30/24 4:08 PM 

A C C E L E R AT I N G D E C A R B O N I Z AT I O N I N T H E U N I T E D S TAT E S REFERENCES DOE (Department of Energy). 2022a. “Energy Efficiency Revolving Loan Fund Capitalization Grant Program (EE RLF) IIJA ALRD.” Administrative and Legal Requirements Document (ALDR). https://www.energy.gov/sites/default/ files/2022-11/EE-RLF-IIJA-Administrative-and-Legal-Requirements-Document.pdf. DOE. 2022b. “Weatherization Assistance Program for Low-Income Persons: Application Instructions.” https://www.energy.gov/ sites/default/files/2022-05/bil-application-instructions_v2.pdf. DOE-EERE (U.S. Department of Energy Office of Energy Efficiency and Renewable Energy). 2022. “Resilient and Efficient Codes Implementation: Infrastructure Investment and Jobs Act.” https://www.energycodes.gov/sites/default/ files/2022-07/NECC2022_2_DOE_IIJA_Presentation.pdf. DOE-EERE. 2023. “Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act of 2021).” https://afdc.energy.gov/ laws/infrastructure-investment-jobs-act. DOE-GD (U.S. Department of Energy Grid Deployment Office). 2022. “DOE’s Implementation Plan for IIJA Section 40101(D)—Formula Grants to States and Indian Tribes for Preventing Outages and Enhancing the Resilience of the Electric Grid.” Notice of Intent (No. DE-FOA-0002764) to Issue Formula Grant Administrative and Legal Requirements (ALRD) Announcement No. DE-FOA-0002736. https://netl.doe.gov/sites/default/files/2022-05/IIJA%2040101d%20-% 20Notice%20of%20Intent.pdf. DOE-GD. 2023a. “Frequently Asked Questions on the Transmission Siting and Economic Development Grants Program.” https://www.energy.gov/gdo/frequently-asked-questions-transmission-siting-and-economic-development-grants- program. DOE-GD. 2023b. “Grid Resilience and Innovation Partnerships (GRIP) Program.” https://www.energy.gov/gdo/grid- resilience-and-innovation-partnerships-grip-program. DOE-OCED (Department of Energy Office of Clean Energy Demonstrations). 2023. “OCED Funding Opportunity Exchange.” https://oced-exchange.energy.gov/Default.aspx#FoaId4e674498-618c-4f1a-9013-1a1ce56e5bd3. DOE-SCEP (Department of Energy Office of State and Community Energy Programs). 2023a. “EECBG Program Formula Grant Application Hub.” https://www.energy.gov/scep/eecbg-program-formula-grant-application-hub. DOE-SCEP. 2023b. “Energy Auditor Training Grant Program.” https://www.energy.gov/scep/energy-auditor- training-grant-program. DOE-SCEP. 2023c. “Grants for Energy Improvements at Public School Facilities.” https://www.energy.gov/scep/ grants-energy-improvements-public-school-facilities. DOE-SCEP. 2023d. “Home Energy Rebate Programs Early Administrative Funds Administrative and Legal Requirements Document (ALRD).” https://www.energy.gov/sites/default/files/2023-03/Home_Energy_Rebates_ALRD.pdf. DOE-SCEP. 2023e. “State-Based Home Energy Efficiency Contractor Training Grants.” https://www.energy.gov/scep/ state-based-home-energy-efficiency-contractor-training-grants. DOE-SCEP. 2023f. “State Energy Program Guidance.” https://www.energy.gov/scep/state-energy-program-guidance. DOT (Department of Transportation). 2022. Bipartisan Infrastructure Law (BIL): Overview of Highway Provisions. https://www.fhwa.dot.gov/bipartisan-infrastructure-law/docs/bil_overview_20211122.pdf. EPA (Environmental Protection Agency). 2023. “EPA Announces Initial Program Design of Greenhouse Gas Reduction Fund.” https://www.epa.gov/newsreleases/epa-announces-initial-program-design-greenhouse-gas-reduction-fund. White House. 2022. Inflation Reduction Act Guidebook. https://www.whitehouse.gov/wp-content/uploads/2022/12/ Inflation-Reduction-Act-Guidebook.pdf. 802 A00026--Accelerating Decarbonization in the United States_APPJ.indd 802 3/30/24 4:08 PM