Thread by @SamTRicketts

Its #ClimateWeekNYC, so its climate🧵week

Yesterday I wrote one⬇️on how the Biden admin can work w/ state & local govts to go further, faster on climate (also lol I called it the Investment Reduction Act)

Today: 3⃣ exciting "force multipliers" in the IRA

https://twitter.com/SamTRicketts/status/1571817909210517514

Ok so first of all, there are a lot of really great climate investments in the IRA. There's also some bad stuff. But it is really hard to choose the most exciting provisions, imo. These transformational $$ will help build a just and thriving clean energy economy.

Amongst the tax provisions, the clean power tax credits with direct pay for non-profit entities, and the clean manufacturing tax credits, are two of my favorites.

And then, at DOE there is the new $6 billion Advanced Industrial Facilities Deployment Program, and there’s the…

the enormous new financing capabilities @ the DOE Loan Programs Office.🤯DOE LPO was one of the first programs I worked on when I came to DC as a wee lad.

(Btw if @JigarShahDC saw me writing about "force multipliers" in the IRA w/out talking about LPO there'd be hell to pay.)

However, here I want to zero in on 3 programs at the @EPA. Because each will deliver meaningful climate progress on their own while empowering states, communities & companies to leverage much more public and private sector $$ to drive even greater impact.

Also, these are major new investment programs–in clean energy, environmental justice, and other climate solutions–that will be led by the EPA, which is an agency more accustomed to regulating pollution than building clean energy. Exciting stuff.

These 3 "force multipliers” for climate action are:
1⃣ State Climate Pollution Reduction Grants
2⃣ Greenhouse Gas Reduction Fund
3⃣ Environmental & Climate Justice Block Grants

Lets dive in...

State Climate Pollution Reduction Grants (IRA Sec. 60114)
This is a new $5 billion program available to states, local clean air agencies, tribal nations and cities, to plan and implement programs, policies and projects that reduce climate pollution.

As I mentioned yesterday, states (+ local govts and tribes) have long been building a road map for nation-wide climate leadership. And this program–a realized version of President Biden’s proposed “Clean Energy Challenge Grants”–could empower some to go further, faster.

Specifically, these Climate Pollution Reduction Grants should be used to lock in new policies (real *requirements*) in a select number of states (and localities, tribes) to drive a faster transition towards 100% clean energy–e.g. in clean power, transportation, buildings.

Next up!
Greenhouse Gas Reduction Fund (Sec. 60103)
Call it the GGRF! No call it a Clean Energy Accelerator! No call it a Green Bank! Its all of these things and its very exciting.

But lets unpack this one because even some of its most ardent enthusiasts are a little confused

The GGRF is 1 program that Congress intended as 2 different programs and that for parliamentary reasons is written in the bill as 3 sections. With me so far? Good.

The GGRF is funded at $27 billion
- $7B for state, local and tribal clean energy programs targeting disadvantaged communities–esp. w/ rooftop solar
- $20B for a Clean Energy Accelerator, with no less than 40% ($8B) to support projects in disadvantaged comms, in line w/ Justice40

The Clean Energy Accelerator is based on the proven model of state & local green banks. Beginning in CT in 2011, 23 state and local green banks have been created in 17 states across the US. @CGreenCapital @AGBConsortium
greenbankconsortium.org

These programs take an initial capitalization and turn it into a self-sustaining program financing clean energy deployment. Every $1 invested leveraging much greater private sector funding, and often extending investment into hard-to-reach market segments.
canarymedia.com/articles/clima…

Fun fact: My old boss, @GovInslee, sponsored the first legislation passed by either chamber of Congress to establish a national Green Bank (an amdt to Waxman-Markey in 2009, co-sponsored by Reps. John Dingell and Bart Gordon).

Took only 13 years for the project to be completed.

And particularly exciting about the GGRF is that both its component programs can be used to build an ecosystem of state, local and national clean energy finance–especially targeting disadvantaged communities–throughout the country.

Ok. Phew. Are you still with me? Yes you. Come back here. We have one more of these force multipliers to discuss. (While we sit at this Drs office waiting to get our blood work done.)

Environmental & Climate Justice Block Grants (Sec. 60201)
This EPA program, funded at $3B, is designed to build capacity and climate solutions in disadvantaged communities. A shout out to leaders at @a_justclimate who worked hard to develop this policy alongside Congress.

Part of building an equitable clean energy economy is ensuring all communities can realize the climate solutions they want for themselves. EPA already has a program designed to support this. But the Small EJ Grants Prgm is capped at a paltry $30k/grant. A new model was needed.

So, EJ advocates, and members + staff in Congress, designed the ECJBG program, to directly fund communities to develop and execute plans for pollution reductions, deployment of clean technologies, and mitigation and resilience against climate and environmental health impacts.

These grants will provide low-income and BIPOC communities with resources they can use to leverage other public and private sector investments in sustainable+equitable economic development. Grants can support community involvement in federal, state & local policy processes, too.

At @EvergreenAction we proposed a similar program, in our Evergreen Action Plan, based on CA’s Transformative Climate Communities program. We believe TCC could serve as a useful model as the EPA sets out implementing these critical investments. @CalSGC sgc.ca.gov/programs/tcc/

In conclusion, these are just 3 of the most exciting climate investments in the Inflation Reduction Act. We at @EvergreenAction think each will help ensure more clean, affordable & reliable energy reaches all communities—cutting pollution, creating jobs, addressing climate change

Each will be a force multiplier that will leverage greater private & public sector funding for transformative change.

There’s so much more in the IRA. And much to be done to ensure this $ reaches communities, deliver projects in an efficient, effective & equitable way. Onward.