Tennessee Seeks ‘Alternative’ Funding Sources After Missing Federal Pollution Reduction Grant • Tennessee Lookout

Tennessee is searching for alternative funding sources after being denied a $95 million grant from the EPA to reduce greenhouse gas emissions. The state had sought funding for community-scale electric vehicle, solar energy, and composting projects as well as a coalition grant to boost energy efficiency programs with neighboring states. Despite the rejection, Tennessee received a $3 million planning grant from the EPA to develop its first comprehensive emissions reduction strategy.
The state’s emission inventory from 2019 shows that transportation is the largest contributor to carbon dioxide equivalent emissions, making up 39% of the total. Tennessee’s approach, called the Tennessee Volunteer Emission Reduction Strategy, focuses on incentives and voluntary participation to reduce emissions.
The Tennessee Department of Environment and Conservation led the coalition that sought the grant funding to support energy efficiency programs. The money would have been used for various projects, including lighting programs and residential energy efficiency initiatives for low-income communities. The Tennessee Valley Authority, the largest public power company in the nation, provides electricity to about 10 million people in the Southeast and is now facing calls to decarbonize faster.
While Tennessee continues to work on its Comprehensive Climate Action Plan, it remains unclear how the state will fund its sustainability initiatives without the federal grant. The state is evaluating alternative funding sources to support emissions-reducing activities.

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