Metro Phoenix is vying for historic climate change project funding
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Metro Phoenix is gearing up to apply for a historic amount of federal funding to reduce greenhouse gas emissions.
Why it matters: The money could jumpstart projects that have been slow to get off the ground due to a lack of funding, like: electric vehicle infrastructure deployment, fleet electrification, solar energy expansion, landfill diversion and building decarbonization.
What's happening: The Inflation Reduction Act of 2022 allocated $5 billion for local greenhouse gas emission reduction.
- The feds are expected to award cities and counties $2 million–$500 million per project.
What they're saying: "I've been doing this for 25 years, and I have never seen funding at this level," Maricopa Association of Governments (MAG) environmental director Tim Franquist told Axios Phoenix.
Driving the news: MAG is collecting public input online and at an open house at Mesa Community College Saturday to help decide which projects should be prioritized in the environmental plan it's developing for the region.
- After that's set to be completed in March, cities and counties will apply for the funds needed to pursue each project.
Between the lines: While reducing greenhouse gas is the stated goal of the grant program, projects that decrease fossil fuel emissions could help with the Valley's ozone pollution, too.
- Metro Phoenix has failed to meet EPA ozone pollution standards for about a decade, and it's going to start causing significant economic consequences as soon as next year, Franquist said.
Threat level: The Valley needs to reduce ozone by at least 7 parts per billion to meet federal standards — the equivalent of removing 4 million vehicles from roadways.
- If metro Phoenix fails to meet the standard by August 2024 — which is essentially a "foregone conclusion" — the feds will require new and expanding mid-size companies to offset their emissions, Franquist said.
- This could have serious economic development implications, as companies may decide to relocate elsewhere to avoid the regulations.
What we're watching: The U.S. government is expected to start awarding project funding next October. Localities will have about five years to implement the programs.
- Meanwhile, the Valley has until summer 2027 to comply with ozone standards or else hit "severe" nonattainment and face even harsher penalties.