{"id":62869,"date":"2024-04-05T11:46:46","date_gmt":"2024-04-05T18:46:46","guid":{"rendered":"https:\/\/energi.media\/?p=62869"},"modified":"2024-04-05T11:46:46","modified_gmt":"2024-04-05T18:46:46","slug":"these-green-banks-are-getting-billions-to-decarbonize-disadvantaged-communities","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/these-green-banks-are-getting-billions-to-decarbonize-disadvantaged-communities\/","title":{"rendered":"These \u2018green banks\u2019 are getting billions to decarbonize disadvantaged communities"},"content":{"rendered":"<p><em>This article was published by <a href=\"https:\/\/grist.org\/equity\/green-bank-greenhouse-gas-reduction-fund-kamala-harris\/\" target=\"_blank\" rel=\"noopener\">Grist<\/a> on April 5, 2024.<\/em><\/p>\n<p><em><strong>By <a class=\"byline-link\" href=\"https:\/\/grist.org\/author\/syris-valentine\/\">Syris Valentine<\/a><\/strong><\/em><\/p>\n<p class=\"has-default-font-family\">The idea of a national \u201c<a href=\"https:\/\/grist.org\/politics\/climate-green-bank-coronavirus-economy-recovery\/\">green bank<\/a>,\u201d which would lend public money to help cash-strapped businesses and individuals invest in things like solar panels and energy-efficiency upgrades, has been kicked around since at least the first Obama administration. But it wasn\u2019t until President Joe Biden signed the Inflation Reduction Act into law in 2022 that the federal government set aside money, through the bill\u2019s $27 billion\u00a0<a href=\"https:\/\/www.epa.gov\/greenhouse-gas-reduction-fund\" target=\"_blank\" rel=\"noopener noreferrer\">Greenhouse Gas Reduction Fund<\/a>, for this express purpose.<\/p>\n<p class=\"has-default-font-family\">On Thursday, Vice President Kamala Harris and EPA Administrator Michael Regan announced that the administration is ready to start signing checks. But rather than centralizing the funding in a single bank, the administration is routing the money \u2014 $20 billion of the total so far \u2014 to eight selected applicants, representing more than a dozen local nonprofits. The idea is that these trusted intermediaries, which have track records investing in local projects already, can better inject the loans directly into communities, with the vast majority of funding going to low-income and disadvantaged recipients. The hope is to provide communities with access to the capital they need to invest in a clean local economy \u2014 according to a vision recipients define for themselves.<\/p>\n<p class=\"has-default-font-family hang-punc-medium\">\u201cWe have the capacity with this approach to empower communities to decide which projects they want that will have the greatest impact from their perspective in the place they call home,\u201d Vice President Harris\u00a0<a href=\"https:\/\/www.youtube.com\/watch?v=-NZqTJC8K-I\" target=\"_blank\" rel=\"noopener noreferrer\">said at the announcement event in Charlotte, North Carolina<\/a>. \u201cWe can invest in those projects in a way that will actually have value for the people that live there \u2014 instead of us from Washington, D.C., telling us what you need.\u201d<\/p>\n<p class=\"has-default-font-family\">In Charlotte, Vice President Harris visited Grier Heights, a historically Black neighbourhood where a community bank called Self-Help has facilitated investments to insulate, weatherize, and electrify nearly 50 homes. The vice president highlighted that these efforts not only created jobs for the contractors who did the work and reduced the carbon footprint of each of the homes, but they also improved the lives of families inhabiting them. When she visited the Grier Heights home of one father and small business owner, the resident told Harris that his combined gas and electric bill had been cut from $600 a month down to around $100 a month after he moved into one of Self-Help\u2019s energy-efficient homes. Those savings allow him and his spouse to spend more on childcare and set aside savings for their children.<\/p>\n<figure class=\"wp-block-ups-image aligncenter\">\n<div class=\"wp-block-ups-image-inner\">\n<div class=\"wp-block-ups-image-inner\">\n<figure style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" srcset=\"https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=1200 1200w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=330 330w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=1024 768w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=1200 1200w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=1536 1536w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=160&amp;h=90&amp;crop=1 160w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=640&amp;h=853&amp;crop=1 640w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=96&amp;h=96&amp;crop=1 96w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all&amp;w=150 150w, https:\/\/grist.org\/wp-content\/uploads\/2024\/04\/Kamala-Harris-and-Michael-Regan.jpg?quality=75&amp;strip=all 1024w\" alt=\"Vice President Kamala Harris, right, and EPA administrator Michael Regan, left, visit the home of Levon McBride in Charlotte, North Carolina, on April 4, 2024.\" width=\"600\" height=\"400\" data-caption=\"Vice President Kamala Harris, right, and EPA administrator Michael Regan, left, visit the home of Levon McBride in Charlotte, North Carolina, on April 4, 2024.\" data-credit=\"ALLISON JOYCE \/ AFP via Getty Images\" \/><figcaption class=\"wp-caption-text\"><em>Vice President Kamala Harris, right, and EPA administrator Michael Regan, left, visit the home of Levon McBride in Charlotte, North Carolina, on April 4, 2024.\u00a0ALLISON JOYCE \/ AFP via Getty Images<\/em><\/figcaption><\/figure>\n<\/div>\n<\/div><figcaption>Self-Help and another community-based lender have partnered with the nonprofit Climate United Fund to invest the nearly $7 billion they were awarded through the green bank program in projects that hope to support families, schools, small businesses, community organizations, and other local institutions. They intend to invest at least 60 percent of those funds in low-income and disadvantaged communities, 20 percent in rural communities, and 5 percent in tribal communities.<\/figcaption><\/figure>\n<p class=\"has-default-font-family\">The other community-based financial institutions that will receive the remaining $14 billion announced on Thursday \u2014 which will be facilitated by the\u00a0<a href=\"https:\/\/www.epa.gov\/greenhouse-gas-reduction-fund\/national-clean-investment-fund\" target=\"_blank\" rel=\"noopener noreferrer\">National Clean Investment Fund<\/a>\u00a0and the\u00a0<a href=\"https:\/\/www.epa.gov\/greenhouse-gas-reduction-fund\/clean-communities-investment-accelerator\" target=\"_blank\" rel=\"noopener noreferrer\">Clean Communities Investment Accelerator<\/a>\u00a0\u2014 have similar goals for the kinds of projects and communities they support. One awardee, the Native CDFI Network, intends to focus its efforts on reservations and in Native communities.<\/p>\n<p class=\"has-default-font-family\">These grants, along with a $7 billion \u201c<a href=\"https:\/\/www.epa.gov\/greenhouse-gas-reduction-fund\/solar-all\" target=\"_blank\" rel=\"noopener noreferrer\">Solar for All<\/a>\u201d grant expected to be announced later this spring, represent \u201cthe single largest climate investment in the Inflation Reduction Act,\u201d according to\u00a0<a href=\"https:\/\/www.epa.gov\/newsreleases\/biden-harris-administration-announces-20-billion-grants-mobilize-private-capital-and\" target=\"_blank\" rel=\"noopener noreferrer\">a press release<\/a>\u00a0quoting Massachusetts Senator Edward Markey, a Democrat who supported the law.<\/p>\n<p class=\"has-default-font-family\">The funds are designed to do far more than simply inject public funds into communities that need them \u2014 they are also intended to catalyze further investment. The EPA expects every dollar of federal investment to spur $7 in private spending. If this projection is correct, then this multiplier would exceed the similar effect observed in separate Inflation Reduction Act provisions. (A recent analysis found that the law\u2019s tax credits drummed up\u00a0<a href=\"https:\/\/grist.org\/economics\/the-ira-has-injected-250-billion-into-clean-energy-it-might-not-be-enough\/\">$5.50 of private investments<\/a>\u00a0for every $1 in credits.) This means that the Greenhouse Gas Reduction Fund could lead to nearly $200 billion in green investment.<\/p>\n<p class=\"has-default-font-family\">Though the idea is that these sorts of effects will make the program a win-win-win for the climate, local communities, and the government, the green bank project is not without its critics. One member of Congress, a Republican representing Alabama, called the effort a \u201c<a href=\"https:\/\/palmer.house.gov\/media-center\/in-the-news\/exclusive-bill-would-eliminate-bidens-27b-green-slush-fund\" target=\"_blank\" rel=\"noopener noreferrer\">green \u2018slush fund\u2019<\/a>\u201d when he tried to repeal the green bank program earlier this year, saying that the program has insufficient accountability and oversight to ensure money is not wasted. In a vote cast almost entirely along party lines,\u00a0<a href=\"https:\/\/subscriber.politicopro.com\/article\/eenews\/2024\/03\/22\/house-passes-repeal-of-green-bank-methane-fee-00148554\" target=\"_blank\" rel=\"noopener noreferrer\">the bill passed<\/a>\u00a0the House of Representatives and was sent to the Senate. While it has yet to receive a vote in the Democrat-controlled Senate, President Biden issued a statement making clear that he would veto the attempted repeal.<\/p>\n<p class=\"has-default-font-family hang-punc-medium\">\u201cWhen we expand access to capital and give every person in our nation \u2014 no matter who they are or where they live \u2014 the opportunity to pursue their dreams,\u201d the vice president said on Thursday, \u201cwe build a cleaner, healthier, and more equitable and more prosperous future for everyone.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>This article was published by Grist on April 5, 2024. By Syris Valentine The idea of a national \u201cgreen bank,\u201d which would lend public money to help cash-strapped businesses and individuals invest in things like <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/news\/these-green-banks-are-getting-billions-to-decarbonize-disadvantaged-communities\/\" title=\"These \u2018green banks\u2019 are getting billions to decarbonize disadvantaged communities\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":62870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[2268,120,528,41,14,2511,890],"class_list":{"0":"post-62869","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-biden","9":"tag-clean-energy","10":"tag-electrification","11":"tag-energy","12":"tag-featured","13":"tag-ira","14":"tag-usa"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>green bank - Thoughtful Journalism About Energy&#039;s Future<\/title>\n<meta name=\"description\" content=\"A national \u201cgreen bank\u201d would lend public money to businesses and individuals invest in solar panels and energy-efficiency upgrades.\" \/>\n<meta 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