Sustainable Finance Module

Sustainable Finance Module is sponsored by U.S. Environmental Protection Agency (EPA). Offers guidance on common funding sources for watershed-related initiatives, including foundation grants, to support the development and implementation of nonpoint source pollution management programs.

Winning grants from the US Environmental Protection Agency Winning grants from the US Environmental Protection Agency There’s a whole world of grants out there for climate startups. Along with the cash, these awards will help you forge partnerships, scale your impact, and boost your credibility – but navigating the application process can be overwhelming.

In our new series, in partnership with Climate Finance Solutions , we’re doing a deep dive into the state and federal agencies that offer these transformative grants. In this edition, we’re exploring how to find, apply, and win grants from the US Environmental Protection Agency (EPA). What types of grants does EPA offer?

EPA’s mission is to protect environmental and human health. On average, it awards $4 billion in funding annually to projects that bolster environmental conservation and protection, as well as climate adaptation and mitigation efforts. It brings an environmental justice lens to its funding, seeking grant proposals that deliver benefits to underserved communities.

The types of grants that EPA offers include research, environmental education, environmental health, environmental justice, trainee support, and the Small Business Innovation Research program (SBIR). It also has more locally-focused programs that are administered through its 10 regional offices, as well as large individual grant programs like the $27 billion Greenhouse Gas Reduction Fund (GGRF). Who’s eligible for EPA grants?

Eligibility for EPA grants varies widely across the agency’s many programs. Potential recipients include nonprofits and community organizations, small businesses, academic institutions, local and state governments, and tribes. EPA tends to fund a higher proportion of nonprofits and community organizations than some other federal agencies, but all of the entity types above are regularly awarded funding.

How to find current opportunities The steps to applying for an EPA grant As with any federal agency, the bar is extremely high when it comes to winning a grant from EPA. To kick-start the process, you’ll need to complete all the necessary registrations with the agency. You can then search for a suitable grant by trawling through Grants.

gov and longlisting those you’re eligible for. This Insights piece from Laura Ward , Climate Finance Solutions’ Director of Funding Research, on how to strategically search for grants may be helpful here. Once you’ve double-checked there’s nothing that disqualifies you from applying, you’ll need to go deeper to ensure the grant is really the right fit, a process that in many cases will include engaging the funder directly.

When you’re set on pursuing the award, you’ll thoroughly scope your project, defining its objectives, timelines, and costs, and ensuring it aligns with what the agency is looking for, as well as your long-term goals for your business. One point to note is that climate startups won’t be eligible for many EPA programs if they aren’t partnered with another entity, such as an academic institution, nonprofit, or local government agency.

You might choose to collaborate with a partner you’re already working with. Otherwise, once you start scoping your application, you can figure out what qualities your potential partner or lead applicant will need to have, seek them out, and get them on board at this stage.

Writing a successful proposal Environmental justice lens is key Environmental justice is a heavy focus of EPA – the agency is committed to reducing inequities in environmental and public health and supports the government-wide Justice40 initiative. So, to stand a chance of success, your project will need to integrate this approach.

Start by using EPA’s tool EJScreen , which can help you understand which communities and demographics across the US are disproportionately impacted by environmental hazards. This can help you tailor your project to the needs of underserved and disadvantaged communities and better align with EPA’s objectives.

How EPA evaluates grant applications EPA uses a peer review process, under which your application will be scrutinized by an external panel of three experts in your field. Each of these specialists will score your application against a set of criteria provided by the agency, such as its scientific merit, potential impact, and alignment with the EPA’s priorities.

The applications that garner the highest score will then be recommended for funding. Typical timelines for an EPA grant The length of time between submitting your application and the announcement of the award will vary between programs, but you can typically expect a wait of between six and nine months. Smaller grants, especially those geared towards nonprofits, can have a shorter timeline and will deploy their funding faster.

Keeping compliant with agency requirements It’s your responsibility to follow the terms laid out in your award contract or cooperative agreement; failure to do so could jeopardize your funding. Make sure you understand what’s required of you and what’s prohibited. You’ll also need to familiarize yourself with the agency’s reporting requirements and stay on top of gathering and communicating the pertinent details about your project.

Doing so can be a time-intensive task, so using a consultant like Climate Finance Solutions will allow you to focus on running your project and stop you from overlooking something crucial. The benefits of receiving an EPA grant - beyond the money By using the funds to get a project off the ground, you’ll generate a strong base of evidence that can be used as a springboard for future federally-funded projects.

Plus, the stamp of approval from a major technical federal agency will be seen very favorably by other parties and open up a world of investment and partnerships. Some of the benefits of receiving a grant will apply even if your project isn’t funded, as during the development process, you’ll have established critical partnerships, cemented access to key customer groups, and helped prove product-market fit.

What to do if your grant application is unsuccessful A rejection doesn’t necessarily mean you’re out of the running. Read the feedback left by your reviewers, which will point out any holes or flaws in your proposal. You should also request a debrief with someone at the agency to learn more about where you fell short, and make a request to resubmit your application once you’ve addressed these issues.

However, some rejections are final, in which case you’ll need to reassess whether the grant you applied for was ultimately a good fit, or if you were trying to fit a square peg in a round hole. What types of grants does EPA award?

EPA funds a wide range of grant programs over a number of topic areas, including, but not limited to, the following: Multipurpose Grants to States and Tribes, which gives states, tribes, and territories funding to tackle issues including PFAS pollution, climate change, and environmental justice. Environmental Education Grants, for projects that promote environmental awareness and action.

Pollution Prevention Grants, enabling businesses to reduce toxic pollutants as well as their water and energy use. Air Grants, for projects related to improving air quality and transportation. Fellowships and student programs for scientists, public health professionals, post-docs, and students.

This year, the EPA also administered the Greenhouse Gas Reduction Fund , a $27 billion federal investment to support the country’s transition to clean energy.

Under the umbrella of the fund is the National Clean Investment Fund, which establishes financing institutions for clean energy projects; the Clean Communities Investment Accelerator, which provides funding and technical assistance to community lenders; and the Solar for All program, aimed at expanding access to solar among low-income communities.

This is a bit of an atypical grant program of EPA, but will have transformative impacts on the US climate ecosystem for decades to come. Like many other federal agencies, EPA also has a SBIR program. For more details on this program, check out our previous Insight with Climate Finance Solutions .