H.R. 1449: Energy Resilient Communities Act

This bill, known as the Energy Resilient Communities Act, aims to improve energy resilience, security, and equity across various communities in the United States, particularly those that are considered environmental justice communities. The key components of the bill are outlined below:

Grant Program Establishment

The bill mandates the Secretary of Energy to establish a program to provide grants to eligible entities to enhance their energy systems. This grant program will support various activities, including:

• Technical Assistance: Grants can be used to upgrade building codes and standards for climate resilience, develop hazard mitigation plans, and assess needs for clean energy microgrid projects.
• Community Outreach: Eligible entities may use funds for public engagement and collaborative planning for clean energy projects.
• Project Development: Grants can finance the development and construction of clean energy microgrids that benefit critical community infrastructure and residences of medically vulnerable customers.

Grant Prioritization

In awarding grants, priority will be given to proposals that:

• Target environmental justice communities, which often face greater environmental and health risks.
• Involve community-owned energy systems, aiming to benefit local populations directly.
• Lead to significant reductions in greenhouse gas emissions, public health disparities, and energy cost burdens.

Educational Outreach Program

The Secretary of Energy is also required to develop an educational outreach program to inform eligible entities about the grant program. This program will prioritize:

• Providing information to entities serving environmental justice communities.
• Promoting public understanding of the benefits of clean energy microgrids.

Cost Sharing and Funding

The federal share for grants will generally not exceed 60% of total project costs but can go up to 90% for projects in environmental justice communities. The bill proposes appropriations of:

• $50 million annually for technical assistance and outreach from fiscal years 2025 to 2034.
• $1.5 billion annually for projects including clean energy microgrid development.

Usage of U.S. Materials

All iron, steel, and manufactured goods used in projects funded by this program must be produced in the United States, with provisions for waivers in specific circumstances.

Labor Standards

Laborers and mechanics working on projects funded through this bill will be required to be paid prevailing wages, and efforts will be made to ensure that the workforce represents local communities and disadvantaged groups.

Reports and Oversight

The Secretary of Energy will report annually to Congress on the number of grants awarded, the total dollar amounts, and detailed information about each grant including its impacts on greenhouse gases and public health.

Definitions

The bill includes definitions for various terms such as:

• Clean Energy: Energy generated from sources such as solar, wind, and hydro.
• Environmental Justice Community: Communities that experience disproportionate environmental burdens.
• Microgrid: Localized grids that can operate independently from the traditional grid.

Relevant Companies

• NEE - NextEra Energy, a leading clean energy provider that may benefit from increased demand for microgrid technology and renewable energy solutions driven by this bill.
• DUK - Duke Energy, which may be involved in microgrid projects and could receive grants for enhancing energy resilience efforts in its service areas.