Environmental justice for communities of need
The IRA will direct billions of dollars to communities based on various EJ (environmental justice) criteria, including income, energy burden, and demographics. These provisions represent the first time that aspects of the Biden administration’s EJ agenda are expressly included in a statute. Until now, agencies have relied on their existing authorities to implement this agenda. Now, under several provisions of the IRA, states and other recipients of IRA EJ funding must direct benefits to “disadvantaged and low-income” communities. There are few legal levers advocates can pull to hold states and local governments accountable. Rather, the bill shifts the burden onto funding recipients to justify spending that conflicts with the IRA’s EJ requirements.
At Renewity, we're excited about the recently passed Inflation Reduction Act of 2022.
We believe that the Climate Justice Initiative will go a long way to helping transform communities, especially those that have been left out due to economics and discrimination. We aid our homeowners to be prepared for the next step in green energy - and not be left out due to costs.
Although the IRA provides some guidance on how EJ funds should be spent, federal agencies and states have a significant role in deciding how programs are designed, implemented, and monitored. There are several factors that will determine how benefits reach communities with EJ concerns, including:
How beneficiaries are identified and defined (e.g., “disadvantaged communities”)
Who is eligible to apply (e.g., state and local governments versus community-based nonprofit organizations)
If applicants must pay before accessing benefits (e.g., tax credits or post-point of sale rebate programs) or pay a non-zero cost share
If grants are distributed using competitive processes, and who defines the criteria for selecting successful applicants
We will closely with the Biden Administration to ensure our homeowners will have access to funding the necessary changes to their homes.
An update to this — Oct. 17, 2023
The Department of Energy, announced the Biden administration’s goal of cutting the cost of home decarbonization in half and slashing household energy costs at least 20 percent by the end of the decade.
“Every American deserves to live in a home with affordable, clean, reliable power,” said Energy Secretary Jennifer Granholm in remarks prepared for the announcement. Energy savings, she said, “means real money back into the pockets of hard-working Americans.”
The effort will focus on spurring cheaper ways of retrofitting households that make below 80 percent of their area’s median income. Granholm highlighted low-cost approaches such as installing simple, compact heat pumps and insulated panels for exterior walls.
The new targets are part of the Biden administration’s broader Justice40 initiative, which aims to funnel 40 percent of the benefits of federal climate action to low-income and minority communities. But the hope is that any solutions will be applicable elsewhere as well.
At RENEWITY, we believe that our homeowners deserve access to these initiatives and will work to secure these for communities under our access.
