EPA Awards $3M to NJ for Climate Projects

On Mar 17, 2023

The U.S. Environmental Protection Agency (EPA) will award $3 million for New Jersey to plan strategies to cut climate pollution and “build the clean energy economy across the state.” Earlier this month, EPA announced the availability of the funds, which represent the first funding going to states, local governments, Tribes, and territories from the Climate Pollution Reduction Grants (CPRG) program created by President Biden’s Inflation Reduction Act. Later this year, EPA will launch a competition for $4.6 billion in funding to implement projects and initiatives included in the plans. New Jersey will be eligible to receive that implementation funding also because it has opted in to receive the planning grant.

New Jersey is among the 50 states, the District of Columbia and Puerto Rico that are eligible to receive $3 million each in EPA Climate Pollution Reduction planning grant funds. New Jersey will use the funds to augment planning already underway in the state in collaboration with partners, including municipalities statewide, and conduct meaningful engagement, including with overburdened communities throughout the state that are often the most impacted by climate change. New Jersey met its 2020 greenhouse gas reduction goal years ahead of schedule and has multiple efforts underway to mitigate the impacts of climate change. New Jersey will use these funds to support its ongoing effort to achieve a low carbon economy and reduce carbon emissions by 80% by 2050. This includes expanding clean energy infrastructure and building resilient communities across the state.

“I want to congratulate the State of New Jersey for being among the first states to sign on to this substantial opportunity. New Jersey is a national climate leader and model for other states searching for ways to make the most out of the once-in-a-generation Inflation Reduction Act and Bipartisan Infrastructure Law resources,” said EPA Regional Administrator Lisa F. Garcia. “It is so important that states and local governments across the country take advantage of this planning funding, because behind it comes an even more substantial investment to do the work and governments that don’t opt in now can’t take advantage of that implementation funding later this year.”

“New Jersey thanks its congressional delegation and the EPA for once again prioritizing and supporting innovative climate action,” said New Jersey Governor Phil Murphy. “Now more than ever, it’s clear that we must confront the urgency of the worsening climate crisis by leveraging every resource and tool at our disposal. Made possible by President Biden’s historic Inflation Reduction Act, these funds will provide support for updates to our foundational climate plans and allow us to further prioritize and implement our accelerated clean energy goals and ongoing efforts to build resilient communities across the state.”

The announcement builds on $550 million announced last week for EPA’s new Environmental Justice Thriving Communities Grantmaking program and $100 million announced earlier this year for environmental justice grants to support underserved and overburdened communities. Additionally, the Greenhouse Gas Reduction Fund will award nearly $27 billion to leverage private capital for clean energy and clean air investments across the country.

About the Climate Pollution Reduction Grant Program

The CPRG planning grants will support states, territories, Tribes, municipalities and air agencies, in the creation of comprehensive, innovative strategies for reducing pollution and ensuring that investments maximize benefits, especially for low-income and disadvantaged communities. These climate plans will include:

• Greenhouse gas emissions inventories;
• Emissions projections and reduction targets;
• Economic, health, and social benefits, including to low-income and disadvantaged communities;
• Plans to leverage other sources of federal funding including the Bipartisan Infrastructure Law and Inflation Reduction Act;
• Workforce needs to support decarbonization and a clean energy economy; and
• Future government staffing and budget needs.

In program guidance released earlier this month, EPA describes how the agency intends to award and manage CPRG funds to eligible entities, including states, metropolitan areas, Tribes, and territories.

Next Steps

This funding for climate planning will be followed later this year by a national grant competition for $4.6 billion in implementation grant funding that will support the expeditious implementation of investment-ready policies created by the CPRG planning grants, programs, and projects to reduce greenhouse gas emissions in the near term. Through the CPRG program, EPA will support the development and deployment of technologies and solutions that will reduce greenhouse gas emissions and harmful air pollution, as well as transition America to a clean energy economy that benefits all Americans.

By summer 2023, EPA Regional Offices expect to award and administer the funding agreements once all legal and administrative requirements are satisfied.

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