US House Bill Offers $1.5 Billion in Clean Energy Microgrid Grants

A new federal program would offer $1.5 billion in grants for clean energy microgrids under a bill introduced in the House of Representatives. The bill aims to help fund clean energy microgrids for critical infrastructure, with a focus on low-income communities and communities of color. The Energy Resilient Communities Act is designed to help combat power outages and rolling blackouts, reduce pollution, create green energy jobs and fight climate change. Last year, 546 microgrids were installed in the United States. About 86% of them were at least partly powered by fossil-fueled generators, according to the lawmakers.

Ranking clean energy microgrids
The bill would authorize $1.5 billion in annual grants for clean energy microgrids to support the critical infrastructure needed in the aftermath of an extreme weather event. It also offers $50 million for technical assistance. The legislation reserves at least $150 million of annual funding for grants supporting community-owned energy systems. State and local governments, territories, tribal agencies, utilities and non-profit organizations could apply for grants, with a priority given to environmental justice communities. Other factors that affect the ranking of planned microgrid projects include how effectively they reduce pollution and improve public health, whether they are built on previously used land, whether they support women- and minority-owned businesses and whether the proposed project will be a community-owned energy system. The grants would support up to 60% of a project’s cost. If the project is in an environmental justice commune, the grant could cover up to 90% of the cost.

Eligible critical infrastructure
Eligible critical infrastructure includes hospitals, grocery stores, community centers, public safety facilities, water systems, public or affordable housing, medical baseline customers and senior housing.

Energy Resilient Communities Act
The Energy Resilient Communities Act prioritizes energy equity and environmental justice by putting grant applications from low-income communities and communities of color at the front of the line for clean energy microgrid grants that will help combat power outages and rolling blackouts, reduce pollution, create green jobs, and fight the climate crisis.

The Energy Resilient Communities Act:

  • Authorizes $50 million in annual grants for technical assistance and $1.5 billion in annual grants for clean energy microgrids to support the critical infrastructure needed in the aftermath of an extreme weather event.
  • A minimum of $150 million of annual authorized funding is reserved for grants supporting the construction of community-owned energy systems.
  • State and local governments, territories, tribal agencies, utilities, and non-profits can apply for grants.
  • Grants are prioritized for applications from environmental justice communities.
  • Examples of critical infrastructure include hospitals, grocery stores, community centers, public safety facilities, water systems, public or affordable housing, medical baseline customers, and senior housing.
  • Projects are additionally prioritized based on several criteria, including how effectively they reduce pollution and improve public health, whether they are built on previously disturbed land, whether they contract for women and minority owned businesses, their utilization of apprenticeships, and whether the proposed project will be a community-owned energy system.
  • The maximum federal cost share of 60%, except for environmental justice communities, where the maximum federal cost share is 90%.
  • Includes Buy American provisions to maximize the creation of American manufacturing jobs in the production of materials and technology for microgrids.
  • There are worker hiring targets for each project to maximize the number of local and economically disadvantaged workers, including those who live in environmental justice communities or were displaced from a previous job in the energy sector.

 Energy Resilient Communities Act has broad support from environmental justice, climate action, and conservation groups.

Sources: https://haaland.house.gov and https://microgridknowledge.com

 




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