BIL/IRA Implementation Digest — March 8, 2024

EPA & Treasury Actions This Week - Direct Pay Tax Regulations & Climate Pollution Reduction Grants - March 8, 2024
by Joe Cullen

Mar 8, 2024 | BIL/IRA Implementation Digest

Announcements this week by EPA and the Department of Treasury inspired us to update some BIL/IRA briefing materials.

 

The following are one-page summaries and related links on the (now final) Direct Pay Tax Credit Regulations & the Priority Climate Action Plans (PCAPs) prepared by states and metropolitan areas for the EPA’s Climate Pollution Reduction Grant program.

 

Next week, we will provide additional analysis of the four PCAPs filed with EPA from Pennsylvania (links below) and other BIL/IRA updates.

 

EPA’s Climate Pollution Reduction Grants Program Update

EPA Link to All State Plans – Filed on or before March 1, 2024

Priority Climate Action Plans for States, MSAs, Tribes, and Territories

 

 

IRS Tax Credits Elective/Direct Pay Final Rules – March 5, 2024

Today, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final rules on elective pay, (otherwise known as “direct pay”).

 

IRS Office Hours on Elective Pay – The IRS is hosting upcoming office hours for elective pay eligible entities. Office hours dates and links to register are as follows:

 

IRS Tax Credits Elective/Direct Pay Final Rules – March 5, 2024 (Attachment #1)

Today, as part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final rules on elective pay, (otherwise known as “direct pay”).

o   Rural Electric Cooperatives, Publication 5817-A

o   Tax-Exempt Organizations, Publication 5817-D

o   State and Local Government, Publication 5817-E

o   Indian Tribal Governments, Publication 5817-F

 

IRS Office Hours on Elective Pay – The IRS is hosting upcoming office hours for elective pay eligible entities. Office hours dates and links to register are as follows:

 

Elective/Direct Pay Resources

Building Jobs & Sustainable Public Energy In Local Communities

Congressional Progressive Caucus Center – One Pagers, FAQs, T  oolkits and more.

Elective Pay for Local Governments

Climate Mayors – what local governments need to know

Investment Tax Credit (ITC) Direct Pay Fact Sheet for Nonprofits – February 13, 2024

https://www.cleanegroup.org/publication/direct-pay-fact-sheet/

Making Clean Energy Tax Credits Deliver for the Public: A User Guide for Governments, Schools, and Nonprofits – July 17, 2023

What Is Elective Pay (aka Direct Pay)? Here’s How It Makes Clean Energy Tax Incentives More Accessible – Evergreen Action Article – Wednesday, June 28, 2023

Lawyers for Good Government

Elective Pay & IRA Tax Incentives Resources Page

A STATE LEGISLATOR’S GUIDE TO DIRECT PAY:

BUILDING JOBS & SUSTAINABLE PUBLIC ENERGY

 

 

EPA’s Climate Pollution Reduction Grants – March 5, 2024 (Attachment #2 )

 

EPA Link to All State Plans – Filed on or before March 1, 2024

Priority Climate Action Plans for States, MSAs, Tribes, and Territories

 

Pennsylvania’s Priority Climate Action Plan

Lehigh Valley – Transportation Decarbonization & Priority Climate Action Plan

Philadelphia-Camden-Wilmington PA-NJ-DE-MD Priority Climate Action Plan

SW PA Regional Climate Pollution Reduction Plan/Priority Climate Action Plan

 

Climate Pollution Reduction Grants (CPRG) Background

 

EPA’s Climate Pollution Reduction Grants – the CPRG program provides $5 billion in grants to states & local governments to develop and implement ambitious plans for reducing greenhouse gas emissions and other harmful air pollution.

CPRG Implementation Grants Webinars – Feb. 15, 2024 & other EPA Webinar Recordings.

CPRG Implementation Grant Program – $4.6 billion in new competitive grants to fund state & local programs and policies that cut climate pollution, advance environmental justice, and deploy clean energy solutions across the country. As part of its evaluation of applications, EPA will prioritize measures that achieve the greatest amount of GHG emissions reductions.

CPRG Grant Size – EPA anticipates awarding approximately 30 to 115 grants ranging between $2 million and $500 million under the general competition.

Application Deadline – Application packages must be submitted electronically to EPA through Grants.gov (www.grants.gov) no later than Noon on April 1, 2024.

Who is eligible? – “Entities eligible to apply for an implementation grant under this competition include lead organizations that were direct recipients of CPRG planning grants and other state, municipal, tribal, and territorial entities that seek to implement GHG reduction measures included in an applicable PCAP developed under a CPRG planning grant.” (see 4 entities above)

CPRG Program Goals – EPA’s general competition for implementation grants is designed to enable states, municipalities, tribes, and territories to achieve the following:

  1.     Implement ambitious measures that will achieve significant cumulative GHG reductions by 2030 and beyond;
  2.     Pursue measures that will achieve substantial community benefits, such as the reduction of criteria air pollutants (CAPs) and hazardous air pollutants (HAPs), particularly in low-income and disadvantaged communities;
  3.     Complement other funding sources to maximize these GHG reductions and community benefits; and
  4.     Pursue innovative policies and programs that are replicable and can be “scaled up” across multiple jurisdictions.

Joe Cullen