US announces US$27 billion fund for clean energy projects

O United States government took another big step in replacing fossil fuels with clean energy, one of the flags of the Democrat government Joe Biden.

On February 14th, the government announced the creation of the Greenhouse Gas Reduction Fund (Greenhouse Gas Reduction Fund – GGRF) of US$ 27 billion.

The fund is part of the package of measures to reduce inflation (Inflation Reduction Act) which, among other resolutions, provides for tax reductions for those who opt for electric vehicles.

O money will be used to finance projects that prioritize clean energy across the United States. The fund will be divided into two parts.

The first will be aimed at non-profit entities collaborating with community financial institutions, cooperatives, financial institutions and companies that finance properties to invest in projects that reduce pollution and contribute to reducing the value of families' electricity bills.

The priority will be low-income families. The forecast is that $20 billion will be invested in the first phase. The other US$7 billion will be used for solar energy expansion projects in the states.

In this part, the EPA (Environmental Protection Agency) will award competitive grants to states and nonprofits to help deploy residential rooftop solar, community solar, and solar energy storage, also with a focus on underserved communities.

“When many people are struggling to pay their bills and deal with the severe impacts of climate change, it makes sense to help parents put solar energy in their homes. This way, they can store their own electricity, reduce carbon pollution and help create thousands of good jobs”, says the senator Bernie Sanders (Democratic Party).

The expectation is that notices for the registration of clean energy projects will be published in June this year.

U.S. Solar Energy Industries Association President Abigail Ross Hopper applauded the move. “This fund represents a major step forward on the path to quickly and equitably decarbonize our transmission network, with new investments of great importance in the community, which we must enable to benefit from the historic Inflation Reduction Law.”

She added: “This program will fund organizations best positioned to help low-income and disadvantaged communities access solar energy through grants and other financial assistance, specifically for solar and solar energy storage technologies.”

Referendum

According to information from Environmental Protection Agency, in October last year, the government opened the scope of the project for public consultation and received more than 400 detailed responses. These responses were used to define the destination of the resources.

“Over the next decade, this investment will help us reap the rewards of today’s efforts. We are financing several clean energy projects to decarbonize communities – including low-income and disadvantaged communities – across the United States. The creation of this fund is the first step toward achieving an equitable clean energy economy,” commented Rep. Debbie Dingell.