While the federal government is providing funds for investing in sustainability efforts to lower greenhouse gas emissions, the work will be done primarily at the state and local levels. So far, twenty-one states and more than 180 cities have taken legislative or executive actions to start the process of moving to a 100% clean energy future.
In this article, we look at the impact of the Inflation Reduction Act and its provisions for state and local entities, the benefits of investing in sustainability, and how Sourcewell can help in the procurement and execution of sustainability efforts.
Inflation reduction act creates greater opportunities for state and local entities
The recently passed Inflation Reduction Act carves out nearly $400 billion for clean energy, including tax incentives, grants, and loan guarantees for various initiatives, including:
- Clean electricity
- Clean transportation, including electric vehicles
- Upgrading and replacing energy infrastructure
- Modification to clean energy tax credits
The modified clean energy tax credit to pay public entities, including state and municipalities, enables credits to be transferred into cash. These were previously only available to investor-owned utilities, but they will now be available to cities that own their own public utilities, such as Cleveland, Ohio, and Columbia, South Carolina.
The Environmental Protection Agency is also providing competitive financing to states, municipalities, and tribal governments for sustainable solutions. The Greenhouse Gas Reduction Fund includes $27 billion in grant funding through the nation’s first national green bank. The funding mechanism provides direct investments and financing in clean energy projects that benefit disadvantaged communities.
Sustainability efforts are underway
Many municipalities already have ongoing efforts. Here are just a few:
- Tallahassee, Florida, boasts the largest airport-based solar farm in the world and a public transportation fleet that includes nineteen all-electric buses.
- Starting in 2025, Chicago has an agreement to purchase 100% clean, renewable energy using solar power and the purchase of renewable energy credits.
- California, Colorado, Minnesota, Oregon, and Washington have all put Buy Clean procurement policies in place.
- New York State has pledged 100% renewable electricity use for operations by 2030.
There are benefits of investing in sustainability
Investing in sustainability has clear benefits for government entities and the constituents that they serve.
More efficient energy use
Sustainability programs can reduce overall resource consumption to lower energy costs. The California Energy Commission reports that the state has saved $100 billion in utility bills by implementing new building and appliance standards.
More efficient energy use also provides a hedge against fluctuating fuel prices. Agreements with government entities include protections against rising prices and commitment to clean energy.
Lower GHG emissions
Transitioning to renewable energy and procuring electric vehicles helps reduce greenhouse gas (GHG) emissions. Transportation is the largest contributor to GHG emissions, contributing about 97% of the global warming potential, according to the U.S. Congressional Budget Office.
Public health improvement
Transitioning to renewable energy and electric vehicle fleets, preserving green space, and making other sustainability efforts can improve local air quality and community public health. The Centers for Disease Control estimates that climate change could cause an additional 250,000 deaths between 2030 and 2050 from factors like heat stress and air pollution.
Sustainability efforts also support improved community outcomes, such as climate justice, affordable housing, and healthier lifestyles.
Response to public concerns
Public sustainability efforts help respond to general concerns and demonstrate government commitment to sustainability. About 48% of Americans think that state governments are not doing enough to fight climate change and develop sustainable programs, and 48% of those surveyed by Pew Research also believe that local governments need to do more.
Setting goals and tracking progress provide additional layers of transparency that many feel are lacking. More than half of public sector organizations do not report on climate impact and sustainability efforts.
Tone setting
Consumers are increasingly choosing more environmentally-friendly products, especially when given the choice. Most people believe that governments are responsible for educating on sustainable practices, such as encouraging the increased use of electric vehicles. Transitioning fleet vehicles to electric or hybrid helps lead by example.
“Market forces alone won’t solve the problem, and the onus is on governments to take a lead.” —EY Global Government & Public Sector report
Economic development
Besides the environmental benefits, investments in renewable energy, green infrastructure, and clean transportation create jobs. Investing in energy efficiency creates nearly three times more jobs than investing in fossil fuel solutions.
Sourcewell can help
Sourcewell can help state and local government entities in their efforts to improve sustainability. Cooperative purchasing agreements are ready-to-use, competitively-sourced contracts. By leveraging the buying power of 50,000 government agencies, Sourcewell’s procurement team takes care of the entire competitive solicitation process, all at no cost to you.
Whether you are looking for electric vehicle fleet solutions, charging infrastructure, or other contracts to support clean energy and sustainability initiatives, Sourcewell can help.
See how easy it is to smoothly adhere to any greening initiatives using Sourcewell’s cooperative purchasing program. Streamline the process by choosing from hundreds of suppliers already on contract. Sourcewell’s procurement experts competitively solicit and award contracts on behalf of 50,000 participating agencies in North America. Check out our contracts here.
