Five Tips for States to Fight Climate Change with Federal Funds
The Biden Administration is investing billions of dollars to address the climate crisis, but how can state and local leaders leverage those funds?
The NewDEAL Forum’s Climate Policy Group met with climate experts and government officials to examine how, exactly, elected officials could take advantage of funding available through the Inflation Reduction Act, Infrastructure Investment and Jobs Act, and other Biden-era laws that could help with both expanding established climate-related programs and investing in new technologies and solutions.
After months of in-person and virtual meetings, the Climate Policy Group, co-chaired by Sen. Ben Allen (CA); Sen. Rebecca Perkins Kwoka (NH); and Mayor Phillip Jones (Newport News, VA), released the “Guide to Leveraging Federal Funding for Sustainable Climate Solutions.”
“To dramatically reduce dirty emissions and achieve clean energy goals, state and local leaders now have new opportunities to pursue new technologies and innovations, drive sustainable practices, and enhance climate resilience,” the co-chairs wrote. “By investing in various sectors, including energy, transportation, and infrastructure, policymakers can drive sustainable economic growth, especially in underserved communities.”
Here are five key takeaways:
1. Seize the Moment to Harness Federal Funding and New Programs to Advance Climate Goals.
Policymakers should assess their community’s climate goals and take full advantage of public and nonprofit resources available to them, including by working on community benefits plans to ensure projects bring real, tangible benefits to everyone in the community. Some helpful tools include:
- The Milken Institute’s Community Infrastructure Center Platform;
- The Electrification Coalition’s EV Funding Finder Guide;
- The Local Infrastructure Hub; and
- The Department of Energy’s Loan Programs Office (LPO).
2. Harness Innovation and Emerging Technology.
The various federal funding mechanisms promote both innovation and proven approaches to addressing the climate crisis. The broad latitude “underscores the need for a comprehensive strategy to address the urgent challenges posed by climate change, while fostering a robust and resilient foundation for a greener, more sustainable future,” according to the guide.
The guide points out how some states are scaling up direct air capture technologies that literally remove carbon dioxide from the atmosphere and store it safely, or use it in valuable products like low-carbon cement.
3. Invest in Cleaner Transportation and Accelerating the Transition to Electric Vehicles.
The electric vehicle (EV) revolution is coming, and federal funding allows states and cities to be on the leading edge of cleaner, more efficient transportation opportunities. There are opportunities for “grants for EV infrastructure development, such as expanding access to EV chargers; substantial financial incentives for the development and adoption of electric vehicles; credits to encourage consumers to purchase electric vehicles; and research funding to advance battery technology and charging infrastructure efficiency and safety.” Key funding streams include:
EV Charging:
- $5 billion from Bipartisan Infrastructure Law (BIL) for the National Electric Vehicle Infrastructure (NEVI) Formula for states to strategically deploy electric vehicle charging stations.
- $2.5 billion from BIL for Charging and Fueling Infrastructure (CFI) grants to deploy publicly accessible electric vehicle charging and alternative fueling infrastructure in urban and rural communities. Eligible applicants include metropolitan planning organizations; U.S. territories; special purpose districts and public authorities; and state, local, and tribal governments.
Medium- and Heavy-Duty Vehicles:
- $5.6 billion from BIL for the Low or No Emission (Bus) Grant Program for states and local governmental authorities.
- $5 billion from BIL for the Clean School Bus competitive grant program.
4. Get Ready for Cleaner, Cheaper, and More Reliable Energy.
Wind and solar energy are expanding at a rapid rate, and states must do their part to help transition to more renewable energy. State and local leaders will play a critical role in modernizing the electric grid, ensuring a dependable and sustainable energy supply that seamlessly integrates power from renewable sources. Modernizing the grid is not solely about taking advantage of renewable energy sources. It also means making the grid more resilient to changing weather patterns, including stronger storms and more extreme weather.
5. Focus on Developing a Strong Workforce for the Green Economy.
The transition to more renewable energy will come with an economic boost for states and cities that are prepared to take advantage of it. The Domestic Content provision of the Inflation Reduction Act (IRA) provides specific benefits to bolster domestic manufacturing, including a suite of clean energy tax subsidies covering solar, offshore wind, and energy storage. These subsidies, encouraging clean energy production, offer a 30 percent credit. And as a bonus, these subsidies create high-quality construction jobs in addition to manufacturing jobs. An extra 10 percent bonus is granted for projects utilizing domestically-sourced materials, such as iron and steel.
Read the full Guide to Leveraging Federal Funding for Sustainable Climate Solutions.
To learn more about the NewDEAL Forum’s Climate Policy Group, click here.
