FIND FUNDING FASTER - Unlock the Trillion-Dollar IRA: Rural Dreams, Energy Justice & Soil Carbon

Based in the US? Find the IRA funding you qualify for. Not interested in the IRA? Scroll to the bottom for an other funding opportunity for nature-based solutions.

Dear Green Innovators,

Welcome back to Find Funding Faster! I'm Neesha Mirchandani, your guide, and I'm thrilled to present the third installment of our newsletter series. Before we get started, if you’re not interested in the Inflation Reduction Act, scroll to the bottom for some investment and philanthropic options for biodiversity, climate, and nature-based solutions.

In this issue, we take a deep dive into the Inflation Reduction Act (IRA), focusing on three key themes in this issue:

1: Charging Up Rural Dreams

2: A Just Energy Transition

3: Soil Carbon Gets its Time in the Sun

But first before we dive in, will you help us with an internal debate we are having here at Impact Stars? Our two previous issues of the newsletter were full of memes. This one is rather light on the memes.

Do you love the memes? Do you hate them? Help us resolve this debate once and for all by replying to this email or commenting below.

Now let’s get started…

1: Charging Up Rural Dreams

The Inflation Reduction Act (IRA) marks the most significant investment in rural electrification since the Rural Electrification Act of 1936. Administered by USDA Rural Development, these provisions aim to catalyze clean energy expansion and reshape rural power production.

For example, Section 22001 allocates up to $1 billion for RUS loans, potentially forgiving up to 50%. Section 22004 brings a whopping $9.7 billion from RUS for loans, grants, and financial aid. It's all about boosting renewable energy systems, zero-emission tech, and carbon capture projects. Plus, it funds energy efficiency in generation and transmission systems.

Imagine your company or nonprofit, running on 100% renewable energy in a rural area: increasing employment, reducing your operational costs and making your LCA look amazing! 

REAP

Section 22002 allocates an impressive $2.025 billion for the Rural Energy for America Program (REAP). $31,813,500 for fiscal year 2023 to 2027 is reserved for underutilized technologies and technical assistance.

Perhaps your technology qualifies or you know someone who could benefit? Share this newsletter with them so they can apply for this funding. 

• REAP is anticipated to support over 41,500 farms and small businesses in adopting renewable energy and energy-efficient practices.

• REAP will host six quarterly competitions to obligate $1.05 billion throughout the remainder of FY 2023 and FY 2024.

• The maximum grant size was increased from $250,000 to $500,000 for energy efficiency projects and from $500,000 to $1 million for renewable energy systems.

• The federal share was raised to 50% for all energy efficiency projects, all zero-emission renewable energy projects, and all projects in designated energy communities and projects submitted by eligible tribal entities. 
   

Biofuels

There are a lot of incentives for all types of biofuels – whether you're into installation, retrofitting, or upgrading ethanol dispensers, or making home heating oil distribution centers more eco-friendly, there’s a lot of money in this pot. 

Recently, I met a founder working on generating biofuel using circular economy principles. I hope the IRA will help such technologies flourish.

2: A Just Energy Transition

The IRA aligns with the Justice40 Initiative, committing to allocate 40% of benefits to disadvantaged communities to address pollution reduction, clean transit, accessible clean energy, and climate resilience.

For clean energy producers in energy communities, there's an extra 10% tax credit.

Grants and incentives await those committed to environmental justice throughout the IRA. For example, DOE's Tribal Energy Loan Guarantee Program makes clean energy more affordable in Indian Country while the Community Forest and Urban Greening Programs are sowing seeds of climate resilience as temperatures rise ($1 billion invested so far across nearly 400 projects). 

The IRA's Environmental and Climate Justice Program (ECJ) allocates ~$3 billion for financial and technical support to empower underserved communities in environmental and climate justice initiatives, with the EPA facilitating grants and assistance by September 30, 2026.

Climate & Environmental Justice Block Grants

Climate & Environmental Justice Block Grants will empower communities in disadvantaged areas to tackle health and environmental challenges head-on.

If you’re working on EJ, The Community Change Grants NOFO is NOW OPEN!  Deadline to apply is November 21, 2024.

Diesel Emissions Reduction Act (DERA)

The Diesel Emissions Reduction Act (DERA) Program funds grants and rebates that protect human health and improve air quality by reducing harmful emissions from diesel engines. EPA anticipates awarding a total of approximately $57 million in FY 2023 funding, subject to the availability of funds, the quantity and quality of applications received, and other considerations.

All application packages must be submitted no later than Friday, December 1, 2023, at 11:59 p.m. (ET).

For Our Ocean Entrepreneurs…

Ports are supported by grants for clean technology and support for their emissions reduction plans. For example:

• Section 133 earmarks $2.25 billion for grants and rebates specifically for climate action planning, permitting, purchase, and installation of zero-emission port technologies.

• Section 133 includes $750 million for port authorities; state, local, regional, and tribal agencies who have jurisdiction over ports; as well as air pollution control agencies; and private entities that own, operate, or use port facilities.

By collaborating with ports, your ocean startup (or nonprofit) may be able to win some of this funding.

3: Soil Carbon Gets its Time in the Sun

For regenerative agriculture and biochar innovators, the IRA unveils a $20 billion opportunity within USDA's conservation programs. This funding boost propels expanded conservation practices, reduced emissions, and increased carbon storage.

Agricultural programs like EQIP, RCPP, CSP, ACEP, and CTA receive a significant financial infusion, creating opportunities for collaboration and investment. 

Here's a glimpse of the allocations that directly benefit farmers, ranchers and foresters:

• Environmental Quality Incentives Program (EQIP): $8.45 Billion

  • EQIP offers substantial incentives to farmers to  adopt climate-friendly practices. This monumental investment opens doors for regenerative agriculture and biochar companies to sell to farmers who can finally afford these climate-friendly products and services! 

• Regional Conservation Partnership Program (RCPP): $4.95 Billion

  • Investing in regional partnerships that promote conservation? RCPP just got a major boost, providing a fertile ground for collaboration and sustainable practices.

• Conservation Stewardship Program (CSP): $3.25 Billion

  • CSP aims to reward farmers for maintaining and enhancing their existing conservation efforts. Now, with additional funding, the possibilities are vast.

• Agricultural Conservation Easement Program (ACEP): $1.4 Billion

  • ACEP supports conservation easements, enabling farmers to preserve their land's natural features. It's an excellent avenue for long-term sustainability.

• Conservation Technical Assistance Program (CTA): $1 Billion

  • For farmers seeking technical guidance on conservation practices, CTA provides essential support. With increased funding, expertise is now more accessible.

This Thanksgiving holiday, I’m grateful that you took time to read this newsletter. We will be moving beyond the IRA in future issues, and covering other funding opportunities both within the United States but also internationally.

What would be most beneficial for you?

Non-IRA Funding Opportunties 🌍

Planet A

Planet A invests in:

- Scalable businesses with scalable impact
- Typically invest from 0.5M to 4M
- Predominantly invest in Europe
- Four impact dimensions: climate mitigation, waste prevention, resource efficiency & biodiversity protection

Pitch them via this form!

Example investment: TRACELESS MATERIALS

Traceless developed a novel generation of bio-circular and plastic-free materials, which are fully compostable in the environment.

Superorganism

Superorganism is the first venture firm dedicated to biodiversity.

It’s not clear from the website how they want to be pitched. But they have a huge list of advisors, so I would recommend connecting through one of them.

Example investment:

ROSY SOIL: Peat-free soil from biochar.

Silverstrand Capital

Silverstrand Capital’s mission is to catalyze biodiversity positive impact through strategic investments.

They welcome you to contact them via their website contact form if you “are involved in biodiversity restoration, regenerative food systems and/or natural climate solutions.”

Based in Singapore, they seem open to investing globally —- from portfolio companies in the US like Natrx to ChaCha in Thailand.

They also make philanthropic donations. For example, Silverstrand is “funding research - conducted by the Wildlife Conservation Society in partnership with the University of Oxford - into shark fin consumer preferences to better understand why local appetite for the delicacy persists, and design interventions to curb overexploitation and promote shark conservation.”

We are on a mission to make it wicked easy for you to Find Funding Faster. How can we make Find Funding Faster the newsletter you can’t wait to open as soon as it lands in your Inbox?

Green regards,

Neesha Mirchandani

P.S. Why did the scarecrow become a successful farmer? Because he was outstanding in his field! 😄

P.P.S. Are our 'green puns' too corny? We're here to lighten your load on the path to a greener future but there is such a thing as too corny… 🌱💡

If you know of a funding opportunity or patient capital allocator you’ve had a great experience working with, please reply or post a comment below so we can shine a light on them!

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