Summary of Key Policy Provisions
Resilient and Healthy Communities
The Inflation Reduction Act includes community-based investments to reduce pollution in disadvantaged communities while improving sustainability and resilience. To maintain its commitment to equity and environmental justice, the law allocates $3 billion for environmental and climate justice block grants, which can be used for community-led monitoring and remediation of emissions, mitigating the effects of urban heat islands, and facilitating the engagement of disadvantaged communities in federal and state policymaking. In addition to those block grants, the law includes $50 million to address indoor air quality and emissions at schools in low income and disadvantaged communities through monitoring programs and technical assistance.
The Inflation Reduction Act also contains a number of provisions that will support state, Tribal, and local governments in climate change planning, resilience, adaptation, and response, prioritizing low-income communities and communities of color that are disproportionately affected by climate impacts. This includes: $2.6 billion in National Oceanic and Atmospheric Administration (NOAA) grants to protect coastal communities and conserve and restore coastal habitats; $5 billion in grants to support resilient forests and communities; $5 billion in grants for drought resilience; and nearly $250 million for Tribal and Native Hawaiian climate resilience and adaptation programs. These critical investments strengthen those already made in the BIL, including historic funding levels for the NOAA Community-Based Restoration Project, National Coastal Resiliency Fund, and Flood Mitigation Assistance.
Additionally, the legislation creates the Methane Emissions Reduction Program (MERP), which will use nearly $1.5 billion in funding to mitigate methane pollution by providing assistance to companies to reduce their methane emissions. The law also allows for the funding to be used for communities impacted by methane and other greenhouse gas pollution including by mitigating health effects of methane and supporting environmental restoration.
Restoration of natural ecosystems and climate resilience go hand-in-hand. Combined with the efforts made in the BIL, the Inflation Reduction Act will help ensure that our infrastructure and communities are prepared for the impacts of climate change. These investments can be built on and expanded to ensure that we create high-quality jobs in the restoration work and put communities first in planning and preparing for future conditions.
Unfortunately, the Inflation Reduction Act did not include investments in our care economy. Funding is still needed for states to strengthen the Home and Community Based Services workforce and assess availability and barriers to accessing home and community-based services.
Category | Program Name and Description | Funding Level | Administering Agency or Office | Funding Mechanism | Timeline | Labor, Equity, and Domestic Content Standards in Text | Eligible Entities | New or Existing Program |
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Community and Worker Resilience | Environmental and Climate Justice Block Grants (Sec. 60201) – Funding for community-led efforts in disadvantaged communities to address climate and environmental injustice. | $3 Billion | EPA (OEJ) | Block Grant | FY22-26 | To benefit disadvantaged communities | Community-based non-profit or partnership of aforementioned plus Tribe, local government, or institution of higher education | New Program |
Community and Worker Resilience | Funding to Address Air Pollution (Sec. 60103) – $117.5 million to deploy, integrate, support, and maintain fenceline air monitoring. $50 million to expand the national ambient air monitoring network with new multi-pollutant monitors and to replace, repair, and maintain existing monitors. $3 million to operate air quality sensors in low-income and disadvantaged communities. $15 million to test and address emissions from wood heaters. $20 million for monitoring methane emissions. $25 million for Clean Air Act Grants. $5 million for implementing greenhouse gas and zero-emissions standards relating to mobile sources. | $235.5 Million | EPA (OAR) | Competitive grants | FY22-FY31 | To benefit low-income or disadvantaged communities | State air pollution control agencies; public or nonprofit private agencies, institutions, and organizations; tribes; individuals | Existing Program |
Community and Worker Resilience | NOAA National Coastal Resilience Fund (Sec. 40001) – For the conservation, restoration, and protection of coastal and marine habitats, resources, Pacific salmon, and other marine fisheries, to enable coastal communities to prepare for extreme storms and other changing climate conditions, and for projects that support natural resources that sustain coastal and marine resource-dependent communities, marine fishery and marine mammal stock assessments, and for related administrative expenses. | $2.6 Billion | Commerce (NOAA) | Contracts, Formula Grants, Cooperative Agreements, and Technical Assistance. | FY22-FY26 | Secretary may waive or reduce the required non-Federal share | Coastal states, Governments, nonprofit organizations, local governments, and institutions of higher education | Existing Program |
Community and Worker Resilience | Tribal Climate Resilience (Sec. 80001) – For Tribal climate resilience and adaptation programs to support their climate adaptation planning, ocean and coastal management planning, capacity building, and relocation, managed retreat, and protect-in-place planning for climate risks. | $260 Million | Interior (BIA) | Various (e.g. Technical Assistance, Direct Expenditure, Grants, Contracts, Cooperative Agreements) | FY22-FY31 | Not Subject to federal cost-sharing or matching requirements; Excluded from funds calculated for “small and needy” program | Tribal Nations and organizations | Existing Program |
Community and Worker Resilience | National Parks and Public Lands Ecosystem Resilience (Sec. 50221-50223) – $250 million for the conservation, protection, and resiliency of lands and resources administered by National Park Service (NPS) and Bureau of Land Management (BLM), $250 million to carry out conservation, ecosystem and habitat restoration projects on lands administered by NPS and BLM. $500 million to provide funding for hiring employees of the NPS. $200 million for deferred maintenance projects in the National Park System. | $1.2 Billion | Interior (NPS, BLM) | Project Grants | FY22-FY31 | Not subject to federal cost-share/matching | N/A – internal federal agency funding | Existing Program |
Community and Worker Resilience | Drought Response and Preparedness (SEC. 50231-50233) – $550 million to the U.S. Bureau of Reclamation for disadvantaged communities to cover the cost of projects that can create reliable sources of water. $25 million to improve canals and other water conveyance facilities by installing solar panels for renewable energy generation. $4 billion to mitigate the impacts of drought through compensation for reduced water consumption, system conversion projects that reduce water demand, and habitat restoration projects. | $4.75 Billion | Interior (Bureau of Reclamation) | Formula and Project Grants | FY22-FY31 | N/A | Public entities and Tribes | New Program |
Reduce Methane Emissions and Leaks | Methane Emissions Reduction Program (Sec. 60113) – For grants, rebates, contracts and loans to provide financial and technical assistance to owners and operators of applicable facilities to prepare and submit greenhouse gas reports; methane emissions monitoring; providing financial and technical assistance to reduce methane and other greenhouse gas emissions from petroleum and natural gas systems, mitigate legacy air pollution from petroleum and natural gas systems in disadvantaged and low-income communities, and support environmental restoration provide support for communities. | $1.5 Billion | EPA (OAR) | Competitive Grants, Loans, and Technical Assistance | FY22-FY28 | N/A | Applicable facility: offshore and onshore petroleum and natural gas production; onshore natural gas processing; onshore natural gas transmission compression; underground natural gas storage; liquefied natural gas storage; liquefied natural gas import and export equipment; onshore petroleum and natural gas gathering and boosting; and onshore natural gas transmission pipeline. | New Program |