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What Works Plus Bulletin:May Edition
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A digest of news and funding opportunities. The What Works Plus (WW+) funder collaborative is a partnership coordination hub across philanthropy, government, and nonprofits to advance equity and climate resilience through thoughtful implementation of historic federal infrastructure, climate, and economic development funding. WW+ is a project of Freedman Consulting, LLC, which provides strategic consulting services to foundations and nonprofit organizations.
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WW+ is also excited to share a new report, “Catalyzing Implementation of Clean Energy Programs”, which highlights philanthropic efforts to leverage federal funding and provides a snapshot of ways that philanthropy has stepped up to support communities as they access and benefit from transformative climate investments. The report provides a snapshot of over $2B in philanthropic commitments since the Inflation Reduction Act’s passage and the work of over 130 national and community foundations actively supporting the implementation of federal funds.
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May Spotlight: News from Members & Friends
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Have a notable investment, partnership, or event coming up? Let Max Shipman know at shipman@tfreedmanconsulting.com and we’ll feature it next month.
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Social Finance, in partnership with Massachusetts Governor Maura Healey, launched the Climate Careers Fund to help low-income Massachusetts residents prepare for clean energy jobs. Leveraging philanthropic resources and public funds, the outcomes-based fund will support career advancement by providing training and upskilling opportunities, with a focus on underrepresented, entry-level, and current fossil fuel industry workers. In a piece for TIME Magazine, Bloomberg Philanthropies’ James Anderson discussed lessons learned from the Local Infrastructure Hub – which has been coaching over 1,300 mostly small and mid-sized municipalities on how to navigate the intricacies of federal infrastructure grants. According to Anderson, the Hub revealed a high demand for technical assistance from small cities, entrenched challenges from most of these communities’ high poverty rates, and a lack of familiarity with or dedicated capacity for competitive federal grants. While the Hub has helped address some of these challenges, Anderson calls for a new approach from the federal government – such as planning grants and provision of technical assistance as part of federal awards. As part of the Economic Opportunity Funders network’s Funder Q&A series, William and Flora Hewlett Foundation’s Chayenne Polimédio discussed the foundation’s work, including its collaboration with other philanthropies to help support the modernization of the Internal Revenue Service (IRS). According to Polimédio, the Inflation Reduction Act (IRA)’s $80 billion investment in the IRS presents a once-in-a-generation opportunity to offer Americans an improved customer experience and, in doing so, demonstrate that government can deliver for residents. (The Hewlett Foundation partners with What Works Plus to coordinate philanthropic support for this work.) The Center for American Progress released “The Key Role of States in Unlocking Direct Pay for Clean Energy”, a report on how states can help communities access the IRA’s Direct Pay provision. The report outlines four roles for states: 1) providing bridge financing to help clean energy projects address upfront costs; 2) providing education and technical assistance on direct pay; 3) building clean energy projects to lead by example; and 4) implementing utility oversight and clean energy standards. The Community Foundation Climate Collaborative, Rhode Island Foundation, and The Funders Network are hosting a webinar on June 11 from 1 PM - 2:45 PM ET to educate philanthropies on how to utilize Direct Pay. The event is intended for funders and organizations that advocate on behalf of nonprofits based in RI, NH, ME, VT, MA, and CT. Interested parties can register here before June 6. In a piece for Inside Philanthropy, Irvine Foundation’s Don Howard and the Milken Institute’s and Accelerator for America’s Matt Horton argue that philanthropies must provide targeted support to rural, tribal, and low-income communities to ensure they have access to federal clean energy benefits. The authors discuss three ways philanthropy can be most impactful in driving funds to these communities: 1) facilitating community benefit agreements, 2) funding green jobs and workforce development programs, and 3) advising state and local officials on how to use federal dollars most efficiently. The Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization published a read-out from an April convening at the Federal Reserve Bank of New York. At the event, White House officials joined financial industry representatives to highlight federal incentives for investment in energy communities, such as the Qualifying Advanced Energy Project Credit. Participants shared insights about the challenges of investing at scale, including intermediary capacity, creating a common taxonomy, and the need for robust community engagement. Rewiring America’s Electrification Incentive Calculator was updated to include information on CO, RI, DC, VT, and MI. The additions to the calculator give households a personalized list of federal, state, local, and utility rebates and incentives they can use to save money on electric technologies, like heat pumps and electric vehicles, and money saving efficiency upgrades, like weatherization and energy-efficient windows. In a New York Times piece, Brookings’ Tony Pipa argues that policymakers can take critical steps to help ensure rural communities can benefit from Bipartisan Infrastructure Law (BIL), IRA, and CHIPS and Science Act (CHIPS) funding, including: 1) ensuring local communities have sufficient staff, expertise, and administrative capacity; 2) enabling access to federal technical assistance centers; 3) simplifying federal application processes; and 4) promoting local decision-making over projects.
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Civic Nation will soon launch a national public education campaign to mobilize a broad, nonpartisan coalition of trusted messengers and help Americans learn about and benefit from the historic clean energy incentives created by the Inflation Reduction Act. You can learn more about this campaign here. Please fill out this interest form if your organization is interested in joining this coalition and getting updates ahead of an expected official campaign launch in summer 2024.
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A snapshot of this month’s key news.
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The White House announced new actions and resources to expand access to capital for small- and medium-sized climate businesses: The release of a new Climate Capital Guidebook that provides a simple, comprehensive map of capital programs across the federal government that are available to climate-related start-ups, small- and medium-sized businesses, and their investors. Lifting the Small Business Administration’s cap on the number of Section 504 Loan Program loans that small businesses may receive for “energy public policy projects,” which include projects that reduce energy consumption such as retrofits and/or renewable energy projects such as adding solar. Small businesses may now bundle multiple 504 loans to finance projects that leverage clean energy technologies.
The Department of Energy (DOE) launched the Community Workforce Readiness Accelerator for Major Projects (RAMP) Initiative, which aims to build community and labor capacity by providing technical assistance for community-labor collaboratives facilitated and supported by a cohort of RAMP fellows. The RAMP fellowship program is currently recruiting mid-career level candidates with backgrounds in labor, community organizing, workforce development, and related fields to learn and work for two years in communities across the country. The applications are open and will remain so through June 30, 2024. The Internal Revenue Service (IRS) issued final regulations for the IRA’s credits for new and previously owned clean vehicles. The regulations give automakers flexibility on critical mineral and battery requirements: electrical vehicles that contain battery materials like graphite coming from “foreign entities of concern” can qualify for the tax credits until 2027. Federal agencies announced transmission-related updates this month, including: The Federal Energy Regulatory Commission (FERC) issued a new rule aimed at increasing transmission capacity across the country. The rule requires utilities to participate in a regional planning process every five years, directs utilities to coordinate with state agencies on cost allocations, and enhances local stakeholders’ role in the transmission build-out process. The rule will take effect in about two months. FERC’s new rule comes on the heels of the DOE releasing “The Transmission Interconnection Roadmap”, a report that provides stakeholders with a variety of solutions to address current challenges in transmission interconnection. The DOE held the first of five webinars on the roadmap which can be viewed here. The DOE also released a preliminary list of ten potential National Interest Electric Transmission Corridors (NIETCs) - areas located across the country that will receive additional federal financing to build up transmission capacity.
The U.S. Department of Treasury and the IRS opened applications for the 2024 Program Year of the Low-Income Communities Bonus Credit Program, which provides a 10 or 20-percentage point boost to the investment tax credit for qualified solar or wind facilities in low-income communities. Applications submitted by June 27, 2024 will be considered together, ensuring applicants have equal opportunity to participate. After this date, DOE will continue to accept applications on a rolling basis. Additional guidance on the program is available on the DOE program homepage.
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A report from The Brookings Institution discusses lessons learned from the Build Back Better Regional Challenge, an Economic Development Administration (EDA) program which awarded $25 million to $65 million each to 21 regions to support the development of industry and technology. Analyzing case studies from the Challenge, the report provides seven lessons to guide place-based economic development strategies and five implications for the future of place-based economic policy.
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BIL’s Affordable Connectivity Plan (ACP) provided $14.2 billion in high-speed internet benefits for 23 million low-income households, but these benefits expired in May 2024. In the absence of ACP, the National Digital Inclusion Alliance is encouraging internet service providers (ISPs) to offer low-cost plans and discounts to qualifying households, and published a Low-Cost Plan Model outlining key recommended features of a quality low-cost broadband plan.
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The White House announced new workforce hubs based in NY, MI, WI, and PA. Through these hubs, the Administration will partner with state and local elected officials and community leaders to implement federal investments from IRA, BIL, and CHIPS through effective place-based workforce development activities. Alongside this announcement, The Council of Economic Advisors released a new analysis outlining the economics behind the Administration’s workforce strategy, including investments in evidence-based training programs and regional employer partnerships.
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The U.S. Department of the Treasury and IRS announced that Direct File will be a permanent, free tax filing option and invited all 50 states and the District of Columbia to participate in the 2025 filing season. Made possible by the IRA, Direct File was piloted in 12 states during the 2024 filing season and helped more than 140,000 Americans successfully filing in the five weeks the program was widely available. The IRS updated their Strategic Operating Plan, a blueprint outlining future plans for the agency’s transformation work and highlighting dozens of improvements for the taxpayers since the passage of the Inflation Reduction Act (IRA), which invested in the agency’s modernization and enforcement activities. The update explains the major projects and outcomes the IRS expects to deliver over the next 12 to 18 months and provides additional details on the agency’s budget and staffing.
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The Department of Transportation (DOT) announced $1.7 million in research funding for a Climate Change and Transportation Research Center at the University of California, Davis. The new center will support the existing DOT Climate Change Center and conduct research to accelerate decarbonization of the transportation sector. The DOT announced $63 million in grant funding for the Safe Streets for All Program. This funding – the first of three rounds of awards – will go directly to 99 local, regional, and tribal communities to improve road safety and help prevent serious deaths and injuries on roads. The grant program is still actively accepting application through August 29, 2024 and communities are encouraged to apply for funding as it remains available.
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The DOE released their Low-Income Energy Affordability Data (LEAD) tool, which is designed to help states, localities, and other stakeholders create better energy strategies by improving their understanding of low income housing and energy characteristics. The tool includes data on the energy burden, energy costs, number of households, and median income on a state level. The Brookings Institution updated their Federal Infrastructure Hub, an interactive database which includes BIL awards by state and metro area, an overview of BIL and IRA’s key programs, current Notice of Funding Opportunities, and links to key internal and external resources. Fund for our Economic Future released the “The Practical Guide to the Green Economy”, a manual designed for leaders in economic development and related disciplines who are working to create good jobs and higher wages in Northeast Ohio. The guide includes three strategic imperatives for stakeholders looking to decarbonize the economy: 1) growing green job hubs, 2) future-proofing businesses, and 3) maximizing community benefits. The White House released an updated map tracking private and public investments in more than 56,000 infrastructure projects across the country and new state fact sheets that highlight state-specific infrastructure investments and stories. Atlas Public Policy released “2023 in Review: A Year of Federal Climate Investments.” The report provides insights into the dissemination and implementation of federal climate funding in 2023 by summarizing investments awarded in the past year, examining six key discretionary programs, and detailing implementation milestones to look out for in 2024.
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WW+ Bulletin: May Edition
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