Original photo by Al Braden
By Cyrus Reed
It would be pretty hard to list them all, but in recent weeks a number of federal funding opportunities have arrived that could benefit millions of Texans. From onsite solar programs to well plugging assistance to clean energy opportunities to massive amounts of funding for Texas residents to make their homes more energy efficient, the financial support to move Texas to a greener, healthier future is at our doorstep. Will our state leaders take advantage of this golden opportunity? How did this all come about?
In 2022, the Inflation Reduction Act was enacted, which includes a dizzying number of programs and tax incentives. While it will take several years for all the programs to be implemented, billions in tax incentives and tax breaks, along with specific programs focused on clean energy development, energy efficiency, onsite solar, and transmission upgrades means that Texas could help lower costs and transform our electric grid.
From Sierra Club’s perspective, not everything in the IRA was good, however. For example, there was a provision in the IRA that the leasing of renewable energy for both offshore and onshore federal lands had to be preceded by the leasing of similar areas for fossil fuel development. Overall, though, the Sierra Club supported the ambitious law, which includes approximately $300 billion in deficit reduction and $381 billion in energy security and climate change programs over the next eight to ten years.
How Can Texas Get the Funds?
State agencies like the Public Utility Commission of Texas, Texas Department of Housing and Community Affairs, Texas Railroad Commission, State Energy Conservation Office, and the Texas Commission on Environmental Quality could apply and receive hundreds of millions of dollars, some of which could directly help Texas residents invest in clean energy. A fact sheet from the White House outlines some of these programs and benefits for Texas.
Solar for All
Some of the first programs are now accepting applications. For example, as part of a larger pot of money known as the Greenhouse Gas Reduction Fund, the U.S. Environmental Protection Agency announced a nationwide Solar for All grant competition, a $7 billion pot of money that would be split between states, tribal governments, and potentially some other local governments and non-profit organizations. All to help lower-income residents get access to the benefits of both onsite and community solar projects.
Recently, in response, the Lone Star Chapter of the Sierra Club sent a letter to Governor Abbott asking him to indicate Texas’s interest before the July 31 deadline. Well, it’s August. What happened?
Good news. On July 31, one of the state agencies - the Texas Department of Housing and Community Affairs - sent in their Letter of Intent to apply for up to $400 million (the maximum allowed) in federal funding. Indications are that at least one other entity in Texas (or rather a coalition of entities) will also be applying, consisting of the four largest counties (Harris, Dallas, Bexar, Travis) and a variety of non-profits to serve a number of geographic areas. Because it is very unlikely that EPA will approve two grants from one state, we have been urging the TDHCA and the coalition to work together before the final application is due in September.
Pollution Reduction Funds
Similarly, the EPA and DOE recently announced additional funding to help cut emissions of methane and other gases from the oil and gas industry. Known as the Methane Emissions Reduction Program, the new funding would make available $350 million nationwide for helping monitor and plug wells from low-producing oil wells that emit methane pollution, a potent greenhouse gas. Indications are that Texas would be eligible for about $35 million in funds. Again, the Sierra Club sent a letter to the Governor and Texas Railroad Commission, the most likely agency to utilize the funds. Information about the funding can be found here.
Energy Efficiency Rebates
Not to be outdone, an even larger pot of money was also announced by the Department of Energy (DOE) to help homeowners, and owners of multi-family housing gain access to grants and rebates to lower the use of energy. Both the Home Efficiency Rebates program (known as the HOMES program) and the Home Electrification and Appliance Rebates (HEARS program) collectively provide $8.8 billion nationwide, and will help American households save money on energy bills, upgrade to clean energy equipment, improve energy efficiency, and reduce indoor and outdoor air pollution. The DOE estimates that these rebates will save households up to $1 billion on energy bills each year and support over 50,000 U.S. jobs.
Just last month, DOE released the applications for states and territories to apply for full program funds for both the Home Efficiency Rebates and Home Electrification and Appliance Rebates. Only state and territory energy offices are eligible to apply at this time. Under the guidance, states like Texas will have more than a year to apply for the money, which in Texas could be more than $700 million for households. It falls upon the State Energy Conservation Office, a unit of the Comptroller of Public Accounts, to apply for the money, though it is possible that SECO could team up with other state agencies. SECO is a relatively small unit of the Comptroller and has just a handful of staff, meaning that applying and managing two such large programs will be challenging.
More Renewables Please!
Finally, there are also new programs that are meant to benefit clean energy projects more directly. First, beginning July 31, the U.S. Department of Agriculture opened up a competitive project known as Empowering Rural America which provides up to $9.7 billion in grants and loans to rural electric cooperatives for projects which reduce emissions, including renewable energy projects. Recently, the Lone Star Chapter sent letters to both Bluebonnet Electric Cooperative and Pedernales Electric Cooperative about this opportunity.Long-time Sierra Club volunteer Ling Zhu traveled to the monthly Pedernales Electric Cooperative meeting to ask them in person to apply for these funds.
Second, after a rather lengthy process including public meetings, input and an environmental assessment, the Bureau of Ocean Energy Management (BOEM) just announced a lease sale on August 29 for several areas of the Texas and Louisiana coasts for the development of off-shore wind.
The sale will include a 102,480-acre area offshore Lake Charles, Louisiana, and two areas offshore Galveston, Texas, one comprising 102,480 acres and the other 96,786 acres. According to BOEM, these three areas have the potential to power almost 1.3 million homes with clean energy and support the creation of new jobs.
Who is applying? Well you might be surprised (or not) but among the dozen or so companies that met the requirements, several oil and gas companies like BP and Shell are among the favorites to win the auction. Sierra Club is supportive of the effort to lease appropriate areas for wind development with required labor and environmental standards as well as community participation. We are hopeful that the winning companies will not only enact good labor practices and agreements, but also consider community benefits. For too long, Gulf Coast communities have been the sacrifice zones to oil and gas development. It will be key to have those same communities benefit from clean energy development. Information about the lease sale can be found here.
Interested in joining a Sierra Club team of volunteers engaging on the IRA and the 2021 Bipartisan Infrastructure Law? Contact Bob Hendricks!