The Biden administration said Friday that it is providing $20 billion from a federal green bank for clean energy projects such as residential heat pumps, electric vehicle charging stations and community refrigeration centers.

Two programs, worth $14 billion and $6 billion respectively, will provide competitive grants to nonprofits, community development banks and other groups to invest in clean energy projects, with a focus on underprivileged communities, the White House said. . The investments follow a $7 billion Solar for All program launched last month for residential and community solar projects in low-income communities.

All three programs will be overseen by the green bank, formally known as the Greenhouse Gas Reduction Fund, that Congress created in last year’s climate bill.

Vice President Kamala Harris called the grant programs announced Friday the largest investment in funding for community-based climate projects in our nation’s history, adding, “It’s a good day.”

Speaking at Coppin State University, a historically black college in Baltimore, Harris said investments from green banks would dramatically accelerate work to mitigate global warming while boosting tens of thousands of climate and clean energy projects across America .

The federal investment means that developers building affordable housing in cities like Baltimore now have the capital they need to install energy-efficient appliances in new units, use less energy and help tenants save on their electricity bills,” Harris said. Small business owners will also be able to get interest-free loans to buy electric vans, reducing pollution and saving on gas, she said.

If we invest in clean energy and electric vehicles, more of our children can breathe clean air and drink clean water,” she said. When we help people upgrade their heating and cooling systems, we reduce electricity costs, so working parents have more money to pay for groceries, home repairs, and school supplies. And just think of all the jobs these investments will create.”

Environmental Protection Agency administrator Michael Regan, whose agency oversees the $27 billion green bank, called it a way to tackle the climate crisis while reshaping the economy. The three programs will provide “transformation tools” for many underprivileged communities that are often passed over by commercial banks and investors, he said.

These communities have lagged behind this transition, and it will be a strong signal for us to the market to take private capital off the sidelines,” Regan told the Associated Press in an interview.

Applications under the program are due this fall and grant awards are expected next year.

The $14 billion National Clean Investment Fund will provide grants to up to three national clean finance institutions, enabling them to work with states and the private sector to provide affordable financing for tens of thousands of clean technology projects across the country, the EPA said. .

The $6 billion Clean Communities Investment Accelerator, meanwhile, will provide grants to up to seven nonprofits that will partner with other groups to provide access to investments needed to roll out clean technology projects. Hundreds of community lenders, credit unions, housing financiers and other institutions will fund clean technology projects in low-income and underprivileged communities, the EPA said.

Maryland

Senator Chris Van Hollen (D-Md.),

a Democrat

who first introduced legislation to create a national green bank 14 years ago, said the grants will accelerate clean energy deployments in underserved communities like Baltimore, which have been disproportionately harmed by pollution and climate change.

These funds will serve as a force multiplier for private investment in clean energy projects to reduce emissions and promote environmental justice in underserved communities across the country,” said Van Hollen, who attended the ceremony at Coppin State with Harris, Regan and others. officials.

The green bank could help fund refrigeration centers in urban areas experiencing extreme heat, as well as electric vehicle charging stations, retrofitting buildings and installing efficient heating and air conditioning systems, Regan said.

It’s really about making sure that every person in this country experiences the best possible quality of life, using clean energy technology to take care of that landing,” he said.

The green bank, modeled after similar banks in states like Connecticut, New York and California, is expected to unlock billions of dollars in private investment, Regan and other officials said.

Republicans in Congress have criticized the green bank, calling it a taxpayer-funded slush fund ripe for abuse.

A GOP energy package approved in March would withdraw money allocated to the green bank. Representative Gary Palmer (R-Ala.)

House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) said the green bank was rushed into law with no need for accountability or oversight for taxpayer stewardship.

Regan disputed that, saying officials “spent a lot of time designing this fund.”

He promised a very rigorous reporting system on how these beneficiaries are investing this capital,” adding: It’s all designed to be followed up with investments in low-carbon strategies, especially for those who otherwise wouldn’t be able to participate.”