The disadvantaged and underserved communities TBL Fund serves have long faced disproportionate barriers to accessing funding for their green projects, whether in terms of capital, resources, or expertise. For example, a 2023 report from the Dept. of Energy (DOE) notes that Tribes have a “an unmet need for project grant funding, technical expertise, and internal capacity building [that] continues to grow.” Rural electric cooperatives (RECs), as nonprofit entities, have been limited in their ability to access the solar and storage investment tax credit (ITC)—historically needing to partner with for-profit business that are eligible the credits in order to take advantage of them. According to the American Council for an Energy-Efficient Economy, “Many housing providers cannot afford to dedicate substantial staff time to planning energy efficiency and solar projects,” and the National Housing Trust notes that multifamily affordable housing developers and owners face challenges including “limited cash flow and reserves to invest in installing solar while sustaining building operations.”
An unprecedented amount of funding is available right now for energy efficiency and renewable energy projects, and it can go a long way toward mitigating these challenges. The Inflation Reduction Act (IRA) enables Tribes and RECs to cash out the value of their ITC through the “direct pay” provision. The Environmental Protection Agency’s $27B Greenhouse Gas Reduction Fund’s (GGRF) has been awarded and is hitting communities: Opportunity Finance Network, one of the awardees for the GGRF Clean Community Investment Accelerator (CCIA) subprogram, launched its program activities on October 10th, 2024. Furthermore, the U.S. Dept. of Agriculture has been awarding grants and low-cost loans to support clean energy projects in rural communities through its New Empowering Rural America Program and its Powering Affordable Clean Energy Program.
These and other funds can be folded into capital stacks that dramatically offset project costs. However, forming the right partnerships is crucial. In addition to navigating available funding, partners can streamline project execution by assisting with design, community engagement, management, et., while ensuring that projects are delivered in a fashion that maximizes benefits for underserved communities. TBL Fund is actively engaging partners all over the country to access funding opportunities for its clients. It is already established as a national leader in this field, received a DOE Better Buildings Climate Finance Innovator Award for a project that coordinated diverse stakeholders and expertise with innovative financing practices, enabling its client to undertake a clean energy project comprising energy efficiency, health & safety, and renewable energy solutions. Together with its sister organization, ICAST, TBL Fund looks to continue this work to reduce greenhouse gas emissions, promote equity, and foster domestic economic growth through clean energy initiatives.