Unlocking opportunities within the CCIA

The Greenhouse Gas Reduction Fund (GGRF) is a transformative $27 billion initiative led by the Environmental Protection Agency (EPA), designed to promote clean energy solutions and zero-emission infrastructure primarily within low-income and disadvantaged communities. The fund opens doors for a wide range of stakeholders – including states, investors, developers, community development financial institutions (CDFIs), tribal entities and more – to make a meaningful impact on the nation’s energy transition.

Among the GGRF’s funding, $6 billion has been earmarked specifically for the Clean Communities Investment Accelerator (CCIA).

The CCIA’s mission is to act as a catalyst for green energy transition, with a particular focus on bridging financing gaps and enabling community lenders to become key players in the green economy. As Baker Tilly principal Joel Laubenstein said during our recent webinar on the CCIA, “Don’t let the fact that your project is two years out dissuade you from rolling up your sleeves, understanding the program and maybe finding some capital here – sooner than you might think – to get it to that shovel-ready stage. … To me, from a developer’s lens, the CCIA offers a really incredible amount of opportunity.”

What is the CCIA?

The CCIA aims to foster a sustainable green lending ecosystem by focusing on two main objectives:

1. Helping community lenders become green lenders: The program equips community lenders with the tools and resources necessary to build green lending programs, ensuring that these lenders can continue to support environmentally conscious projects well into the future.
2. Funding qualified projects: At the same time, the CCIA provides funding to qualified projects, acting as gap financing to help these projects secure the necessary capital to proceed. The program supports projects that not only mitigate air pollution and greenhouse gases but also attract private investment or benefit community-led environmental efforts.

What makes a project eligible?

To qualify for funding under the CCIA, projects must meet several key criteria:

• Mitigate environmental impact: The project must help reduce air pollution and greenhouse gases, contributing to cleaner air and a healthier environment.
• Demonstrated need for subsidized financing: The project should prove that it requires financial support beyond what traditional funding sources can offer, with the CCIA funding acting as a bridge.
• Leveraging additional capital: Projects must also show the ability to attract outside capital, ensuring the CCIA funds amplify and extend the impact of other investments.
• Commercial feasibility: Projects must rely on technologies that are commercially viable. New, untested concepts are less likely to qualify unless they can demonstrate commercial potential.

Priority projects under the CCIA

While the CCIA supports a wide range of projects, there are priority categories where funding is particularly focused. These include:

• Distributed energy generation and storage: Projects that use a variety of energy generation and storage technologies, such as solar photovoltaic systems, community solar, wind projects and energy storage systems. These projects must help communities transition to carbon-free power and storage.
• Net-zero emissions buildings: Highly energy-efficient buildings that are entirely powered by renewable energy, resulting in zero on-site emissions (scope 1 and 2). This includes both new net-zero building construction and retrofitting existing buildings to meet net-zero standards over time.
• Zero-emissions transportation: Projects that reduce or eliminate emissions from transportation. This includes the electrification of light-duty vehicles, medium and heavy-duty trucks, buses, and the infrastructure needed for charging electric vehicles. It also covers efforts to make communities more walkable or bikeable, supporting sustainable transportation solutions.

The community focus

A core aspect of the CCIA is its commitment to serving low-income and disadvantaged communities (LIDACs). Eligible projects must either be located in these communities or directly benefit low-income or disadvantaged individuals and households. This focus ensures that the transition to a green economy is equitable and that the benefits of clean energy are shared with those who need them most.

There are tools available, such as Baker Tilly’s innovative LIDAC mapping tool, that can quickly determine whether a specific address or community qualifies for CCIA funding, making the process of identifying eligible projects straightforward and efficient.

Maximizing funding flexibility

The CCIA offers the potential to maximize funding on qualified projects, not to mention tremendous flexibility in how its funds can be utilized within a project’s capital stack. This flexibility is designed to make it easier for project developers and community lenders to access funding and meet program requirements. However, it's important to note that this flexibility comes with certain compliance considerations.

For example, projects under the CCIA may need to adhere to standards such as Build America, Buy America (BABA) and Davis-Bacon and Related Acts (DBRA), which impose specific requirements on materials sourcing and labor practices. These regulations aim to ensure that federal funds are used to support American industries and fair labor practices.

By understanding the CCIA and its requirements, stakeholders can position themselves to benefit from the green revolution, helping not only the environment but also communities in need.

Take the leap

To explore your project’s eligibility under the CCIA or for assistance with funding application or compliance, connect with a CCIA specialist today.