The Environmental Protection Agency (EPA) has announced the FY25 funding opportunity for Revolving Loan Fund (RLF) Grants as part of its Brownfields Program. The goal of this program is to support the cleanup of brownfield sites—properties where redevelopment may be hindered due to environmental contamination. The grants will be used to capitalize loan funds for entities to offer low-interest or forgivable loans and subgrants to remediate these sites. A total of $15 million is available, with awards ranging from $800,000 to $1 million, contingent on the quality of applications and funding availability. Applications are due by 11:59 p.m. ET on November 14, 2024, and must be submitted through Grants.gov.

RLF Grants are designed to operate for the long term, requiring significant local resource commitments to maintain revolving funds and manage program income generated through loan repayments. RLF grant recipients must use at least 50% of the funding to provide cleanup loans, while the remaining funds can cover programmatic and operational costs. Subgrants for site cleanup are capped at $500,000 per site and are available only to entities that own the property throughout the grant term. Loans are also available to non-owners, although RLF recipients may not issue loans or subgrants for cleanup of properties they own or for sites where they have potential liability under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

Eligible applicants include general-purpose local governments, land clearance authorities, state-created government entities, redevelopment agencies, state governments, certain Tribal entities, and some nonprofit organizations. However, entities with an active RLF cooperative agreement are not eligible to apply. Coalitions are allowed, where one lead organization partners with other eligible entities, but each coalition member must be legally distinct and non-affiliated with the lead or other coalition members. Coalition members may only participate in one application per grant cycle. If awarded, the lead organization will manage the cooperative agreement, including all subgrants and loans, and will be the main point of contact with the EPA.

Grant funds can be used for direct cleanup costs, programmatic costs such as project oversight, health monitoring related to contamination, and purchasing environmental insurance. However, they may not be used for proposal preparation, fines, indirect administrative costs above five percent, or costs for federal compliance outside of cleanup requirements. EPA requires grant recipients to track outputs, such as the number of loans and cleanup plans completed, and outcomes, such as acres of land prepared for reuse, which align with the EPA’s strategic goal of revitalizing communities.

This funding aligns with the EPA's commitment to environmental justice by prioritizing projects that support underserved and historically marginalized communities, advancing the Justice40 Initiative, which seeks to direct 40% of certain federal program benefits to disadvantaged areas. Applicants are encouraged to integrate equitable development strategies, such as providing access to affordable housing, high-quality jobs, and local hiring preferences (where allowed). Additionally, projects that consider climate resilience, such as adaptive reuse planning for areas vulnerable to climate impacts, will be favored in the evaluation process.

Applications will be evaluated based on project vision, community need, engagement strategies, cost efficiency, and programmatic capacity. The EPA will review applicants' oversight capabilities, requiring a legal opinion affirming the applicant’s authority to operate a revolving fund, enter into loan agreements, collect repayments, and enforce site access in cases of emergency or non-compliance. While applicants may hire contractors to assist in managing the program, all procurement must comply with EPA’s fair competition rules, including advertisement and selection transparency.