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-Editorial
The federal government has unveiled the largest-ever investment in clean energy and climate change, with 40% of the $27 billion earmarked for communities facing high per capita energy costs and significant pollution burdens. This funding is part of the Greenhouse Gas Reduction Fund (GGRF), a key component of the Inflation Reduction Act established two years ago.
However, many communities remain unaware of the GGRF’s existence or its potential benefits. What initiatives are underway for these energy-burdened areas to access grants for green energy projects? Which regions are most impacted by energy challenges? And how can local agencies and grassroots nonprofits tap into these resources?
A recent panel hosted by Ethnic Media Services featuring experts and local stakeholders provided insights into the GGRF and its potential to lower household energy costs while uplifting disadvantaged communities.
David Widawsky, Director of the GGRF at the U.S. Environmental Protection Agency (EPA), underscored the urgency of mobilizing capital to meet national climate needs. “The Greenhouse Gas Reduction Fund represents a historic $27 billion investment aimed at addressing the climate crisis, ensuring economic and energy competitiveness, promoting energy independence, and lowering energy costs for historically marginalized communities,” Widawsky stated during a public forum.
As the largest non-tax investment targeting communities disproportionately affected by pollution, the GGRF includes key programs such as the $6 billion Clean Communities Investment Accelerator. This initiative is designed to provide essential lending resources for projects like residential solar installations and energy efficiency improvements.
“All three of these GGRF programs will finance projects ranging from renewable energy, like solar, to zero-emission transportation,” Widawsky noted. “We are building sustainable clean energy ecosystems for future generations.”
Widawsky highlighted the importance of directing at least 40% of funding to low-income areas to alleviate energy burdens and improve public health. “This is a tremendous opportunity for communities to access clean energy financing and benefit from transformative projects,” he concluded.
With this significant investment, the EPA aims to catalyze the clean energy transition, fostering both economic revitalization and environmental sustainability across the country.
Evie Bauman, Director of Community Implementation at Rewiring America, shared insights on the Power Forward Communities Coalition, one of the beneficiaries of the GGRF aimed at enhancing access to clean energy solutions. Bauman expressed her enthusiasm for the discussions, stating, “I’m glad we’re meeting, and hopefully, this will be the first of many conversations.”
Bauman explained that Rewiring America, a nonprofit founded in 2020, seeks to electrify homes by replacing fossil fuel-powered appliances with electric versions using clean energy. With approximately 42% of the nation’s energy-related emissions stemming from household choices, she emphasized the role individuals can play in combating climate change. “By opting for electric appliances, we can improve air quality, increase efficiency, and reduce energy costs,” she noted.
Yet, Bauman acknowledged that the initial expense of electric appliances can be a barrier for many families. “That’s why we formed the Power Forward Communities Coalition with five other nonprofits to create financial products that make electrification accessible to all income levels.”
She highlighted the coalition’s plan to leverage the National Clean Investment Fund, which has dedicated $2 billion over seven years to support community electrification. “Our goal is to simplify the process for families looking to install heat pumps and other electric appliances,” she said, mentioning the coalition’s hands-on approach in local areas to ensure immediate benefits.
In DeSoto, the coalition has completed demonstration projects, providing over 75 households with electric appliances at no cost. “We partnered closely with Georgia Power to maximize energy efficiency incentives, helping residents significantly lower their energy bills,” Bauman shared, noting one household saw their bill drop from $180 to $98.
Jessie Buendia, Chief Impact Officer at the Coalition for Green Capital (CGC), discussed the organization’s efforts to tackle climate change through innovative green banking initiatives. “We are fortunate to be one of three national coalitions receiving funding from the GGRF,” she said, highlighting CGC’s $5 billion allocation to support green banks focused on reducing greenhouse gas emissions.
Buendia emphasized the coalition’s commitment to prioritize communities disproportionately affected by climate change. “As we address the climate crisis, it is crucial to ensure that the most impacted communities are first in line to receive benefits,” she stated, aiming for the economic and health advantages of the green energy transition to reach low-income, rural, and tribal areas.
The CGC envisions a national network of green banks working collaboratively to create a clean power platform that can surpass fossil fuel reliance. “Our goal is to build a clean power platform that delivers renewable energy to all communities,” Buendia explained.
Addressing the challenges of transitioning to clean energy, she stressed the necessity of private sector investment. “Climate change is a trillion-dollar problem, and the government’s $27 billion investment aims to catalyze private investments essential for this transition,” she said.
Buendia reinforced the importance of trusted community partnerships in achieving these initiatives. “Media organizations play a critical role in communicating the benefits and opportunities these projects provide to historically disinvested communities,” she urged, calling for collaboration to ensure an equitable transition to clean energy.
Chrystel Cornelius, President & CEO of the Oweesta Corporation, discussed the essential role of community development financial institutions (CDFIs) in supporting tribal communities. Speaking from the Turtle Mountain Reservation, she expressed enthusiasm for the initiatives Oweesta is launching with funding from the Green Renewable Funds (GRF).
“Oweesta is a Native intermediary CDFI dedicated to providing safe and affordable capital and technical assistance to communities lacking access to mainstream financing,” Cornelius stated, noting the existence of over 1,200 CDFIs nationwide created to serve historically underserved populations.
Cornelius announced a major milestone: Oweesta has been awarded $156 million for its Solar for All program, aimed at serving 20,000 households within tribal nations by developing accessible community solar projects. “This is the largest allocation of funding for green energy we’ve seen,” she remarked, emphasizing the potential for transformative change within rural and tribal communities.
The Solar for All program, set to launch in April 2025, includes plans for community engagement. “We want to ensure all tribes and communities are informed and involved in these initiatives. We are developing a website to provide information on available projects and trusted vendors,” she added.
As part of the Justice Climate Fund coalition, Oweesta will leverage additional funding for capacity building and workforce development in marginalized communities. “This funding will change the economic and energy landscape for our communities,” Cornelius asserted.
Concluding her remarks, she expressed optimism, stating, “We’re one step closer to saving our planet. We only have one, and they’re not making any more.”
