4 minute read
American Rescue Plan Act
Federal Funding to Combat Climate Change
By James Clark, Director of State and Local Response and Recovery, IEM
Advertisement
and Michele Jones, Project Manager, State and Local Response and Recovery, IEM
The 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 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.
Building stronger neighborhoods and communities through green spaces can address the economic and social conditions which influence individual and group variances in health status. To improve conditions, jurisdictions may make investments in parks, public plazas, and other public outdoor recreation spaces to promote healthier living environments, encourage outdoor recreation and socialization that further mitigate the spread of COVID-19.
In addition, investments in green infrastructure can reduce harmful carbon pollution, cool urban heat islands, minimize flooding, improve water quality, and clean the air.
Urban tree canopies in parks and along city streets are estimated to remove 711,000 metric tons of air pollution annually (a $3.8 billion value) and sequester more than 90 million metric tons of carbon (CO2 equivalent), which is equivalent to removing more than 19 million cars from the road for one year according to the National Recreation and Park Association.
Across New York, communities are considering investments in water, sewer, and broadband infrastructure to reduce environmental risk. The U.S. Department of the Treasury identifies eligible projects counties may consider, including but not limited to:
• water treatment • source rehabilitation and decontamination
• construction of publicly owned treatment facilities, national estuary program projects, stormwater systems,
• water conservation, efficiency, and reuse measures,
• energy efficiency measures for publicly-owned treatment works
• and water reuse projects.
With the American Rescue Plan’s Coronavirus State and Local Fiscal Recovery Funds allocation, jurisdictions can alter the scope of their community and secure a brighter future by combating the COVID-19 public health emergency, implementing programs to build stronger neighborhoods, address health disparities, and improve infrastructure to ensure clean drinking water, lead-free homes, and clean air to improve the quality of life for all residents while combating climate change related hazards.
Registered Municipal Advisors Serving New York State Municipalities Since 1967
Bond & Note Issues w Refunding Bond Issues w Lease Financings w EFC Short and Long Term Financings w Energy Performance Contract Financing w Credit Ra�ng Assistance w Accoun�ng & Bookkeeping Services w Cash Flow Borrowings w Con�nuing Secondary Market Disclosure
CORPORATE HEADQUARTERS 250 South Clinton Street, Suite 502, Syracuse, NY 13202 Phone (315) 752-0051 John Shehadi, CIPMA, Municipal Advisor Mark Vislosky, CIPMA, Municipal Advisor Christine Crowley, CIPMA, President/Municipal Advisor Benjamin Maslona, CIPMA, Executive Vice President/Municipal Advisor
CAPITAL REGION Jeanine Rodgers Caruso, CIPMA MBA, CEO/Municipal Advisor 63 Putnam Street, Suite 202 Saratoga Springs, New York 12866 (518) 541-3861
HUDSON VALLEY REGION Beth Ferguson Vice President/Municipal Advisor 827 Rte 82, Suite 10231 Hopewell Junction, New York 12533 (845) 447-2214
www.fiscaladvisors.com
WESTERN REGION Kelly Lathan, Financial Analyst 5 North Avenue LeRoy, New York 14482 (585) 502-5010
