States team up in fierce race for EPA climate grants

By Adam Aton | 06/12/2024 06:16 AM EDT

State coalitions might have a better shot at receiving big payouts from the Inflation Reduction Act if they propose cross-border projects, a new report says.

EPA headquarters in Washington.

EPA is deciding which states will receive a slice of $4.3 billion in grants for climate projects. Stefani Reynolds/AFP via Getty Images

Generous federal grants are inducing some states to improve their climate policies, according to a new analysis of an Inflation Reduction Act program.

Climate Pollution Reduction Grants (CPRG), one of the most flexible EPA programs included in the Inflation Reduction Act, offered every state $3 million to develop decarbonization plans, followed by the opportunity to compete for a slice of $4.3 billion to implement them. Almost every state participated, along with many cities, leading some places to produce their first-ever climate plans.

Now, EPA is deciding which ones deserve federal funding, with the largest awards valued at $500 million. The agency said it expects to announce the winners later this summer. The plans are revealing that some states have big ambitions that reach beyond their borders.

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That’s according to Evergreen Action, the climate policy and advocacy group that helped shape President Joe Biden’s climate law. The group released a report Wednesday outlining some of the strongest state plans — including some that seek a competitive edge through cooperation.

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