American Rescue Plan Act Federal Funding to Combat Climate Change By James Clark, Director of State and Local Response and Recovery, IEM and Michele Jones, Project Manager, State and Local Response and Recovery, IEM
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he American Rescue Plan Act will deliver over 12 billion dollars across the State of New York. The direct allocations of the Coronavirus State and Local Fiscal Recovery Funds will provide a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery. In utilizing the funds to address the public health emergency, counties are also encouraged to consider how this once-in-alifetime funding opportunity may be used to reduce threats to our climate change related hazards. The American Rescue Plan Act identifies broad funding areas for jurisdictions to replace lost public sector revenue; support public health expenditures; address negative economic impacts caused by the public health emergency; provide premium pay for essential workers; and invest in water, sewer, and broadband infrastructure. Through the initial funding segment, counties may calculate the revenue lost due to the COVID-19 public health emergency, utilizing the methodology provided by the U.S. Department of the Treasury. The Interim Final Rule provides recipients with broad latitude to use funds for the provision of government services to the extent of the revenue loss. Through the revenue loss provision, jurisdictions can seek to implement climate-friendly energy efficiency adaptation and climate mitigation measures while maintaining or building new infrastructure. During renovation or while designing buildings, counties may consider improving the building’s
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NYSAC News | Fall 2021
insulation, incorporating energy-efficient lighting, utilizing efficient cooling/heating equipment, designing a strategic building façade, focusing on renewable energy sources, and implementing cogeneration systems. Cogeneration systems increase the energy efficiency of large facilities by recovering waste heat from onsite electric generators, which is used for space heating and domestic water heating. Supporting public health expenditures also offers an opportunity to consider the climate crisis through COVID-19 mitigation measures, such as ventilation improvements in congregate settings, health care settings, or other locations, and capital investments in public facilities to meet pandemic operational needs, such as physical plant improvements to public hospitals and health clinics or adaptations to public buildings to implement COVID-19 mitigation tactics. While implementing these measures, climate-friendly energy efficiencies may be incorporated. Jurisdictions may also seek ways to reduce the number of individuals seeking in-person government services to mitigate the spread of COVID-19, which may be an eco-friendly alternative. When addressing the negative economic impacts caused by the public health emergency, the Interim Final Rule provides opportunities for communities to improve outdoor spaces and services when located in a Qualified Census Tract (QCT), offered to families and individuals living in QCTs, or provided by Tribal governments.