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Following months of NAFCU advocacy to secure credit unions’ ability to receive money from the Greenhouse Gas Reduction (GHGR) Fund, the Environmental Protection Agency (EPA) agreed with the association’s position and declined to solely disburse funds through a green national bank.

“NAFCU is pleased that the Environmental Protection Agency rejected the idea of a single, national green bank in favor of a multi-recipient model to ensure credit unions and community development financial institutions (CDFIs) are able to assist in fulfilling the core objectives of the Greenhouse Gas Reduction Fund,” said NAFCU Vice President of Regulatory Affairs Ann Petros.

“NAFCU has been a leading advocate for a commonsense interpretation of the text of the Inflation Reduction Act to establish an efficient and effective framework that will leverage the strengths of experienced community-based lenders, especially those in low-income and disadvantaged communities, and swiftly and more pragmatically deploy monies from the Fund to reduce greenhouse gas emissions and other air pollutants.”

The GHGR Fund was established under the Inflation Reduction Act of 2022 to provide grants for zero-emission technologies, and financial and technical assistance for projects to reduce greenhouse gas emissions and other air pollution. 

The EPA Tuesday announced it will disburse funds through two federal assistance listings: $7 billion for a zero-emissions program for state, local and native governments; and $20 billion for an accelerator program for eligible non-profits, which includes credit unions and CDFIs. The agency anticipates making up to a total of 75 awards, with a breakdown of up to 60 awards to state and local governments and between 2-15 awards under the accelerator.

NAFCU called on the EPA to allow credit unions to obtain funds through the GHGR Fund to support projects that reduce greenhouse gas emissions and air pollution in low-income and disadvantaged communities. In response to inaccurate and misleading comments regarding the EPA’s ability to distribute money from the fund to credit unions, Petros countered with a legal analysis that indicated otherwise.

NAFCU will continue to work with the EPA and Congress to ensure appropriate implementation of the fund and credit unions’ access to it for qualified projects.