Building a Just Future: CLCPA Investments for New York's Disadvantaged Communities

By Maya Gerber, ACE NY Intern

On Feb. 1, DEC and NYSERDA released preliminary guidance for state entities to inform the investments and benefits reporting on compliance with the Climate Leadership and Community Protection Act’s (CLCPA). They then held a virtual information session to provide information about the draft reporting guidance to ensure that New York state entities account for disadvantaged communities, in accordance with the CLCPA. The CLCPA requires that state agencies, authorities, and entities direction a minimum of 35%, with a goal of 40%, of the overall benefits on clean energy and energy efficiency programs, projects, or investments in the areas of housing, workforce development, pollution reduction, low-income energy assistance, energy, transportation, and economic development to disadvantaged communities (DACs).

In an overview of the CLCPA, the panelists discussed that this act has the most aggressive greenhouse gas reduction goals of any major economy, which is 40% by 2030 and 85% by 2050. This also includes 70% renewable energy by 2030, and 100% zero-emission electricity by 2040. The CLCPA encourages a path to carbon neutrality, codifies clean energy targets, and demonstrates commitments to environmental justice, disadvantaged communities, and just transition to properly serve those communities.

On Accounting of Energy Efficiency and Clean Energy Investments, it was presented that investments must meet the following criteria:

  1. Authorized or implemented by a New York state agency, authority, or entity.

  2. Clean energy or energy efficiency investment as either:

    • A stand-alone program.

    • Components of programs within the categories outlined in the CLCPA.

  3. Place-based, where:

    • The funds can be directed to communities, or where benefits of a program can be localized to a defined geographic area.

    • A clean energy or energy efficiency investment anywhere in the state that is within a low-income household defined as at or below 60% state median income.

In relation to place-based and state/system wide investments, some clarity was made. Place-based investments are where initiatives can reasonably prioritize or target investments to individuals, households, businesses, and other entities within a specific geographic area. State- or system-wide investments are designed to meet the needs of the state’s energy infrastructure or other state-wide grid objectives.

Disadvantaged communities are at the frontlines of the climate crisis, and by ensuring that 40% go to these communities, it will help ensure equitable outcomes of the CLCPA. DEC and NYSERDA are actively seeking feedback and will be accepting comments until Feb. 23. Comments can be sent via mail to Alanah Keddell-Tuckey, NYSDEC - Office of Environmental Justice, 625 Broadway, Albany, New York 12233-1550 or via email justice@dec.ny.gov, include "Draft Disadvantaged Communities Reporting Guidance” in the subject of the email.

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