How AEG can help secure clean energy investment through the IIJA
Author: Matt Marth, AEG Chicago Fellow, Advanced Energy Group
The Infrastructure Investment and Jobs Act (IIJA) is a monumental investment in clean energy; AEG is eager to leverage its network and resources to build the partnerships necessary for winning IIJA grant proposals.
As states, municipalities, and utilities across the country rapidly approach deadlines for ambitious climate goals, the need for prompt, effective, and large-scale clean energy interventions is as urgent as ever. The energy sector has a huge opportunity for concerted action and investment toward the goals that must be achieved to maintain the possibility of a livable future. This opportunity lies in the Infrastructure Investment and Jobs Act (IIJA), also known as the bipartisan infrastructure deal, signed into law by President Biden in November 2021. The IIJA provides a critical opportunity for meaningful investment and large-scale action on a range of issues that align perfectly with Advanced Energy Group’s (AEG) existing network, resources, and ability to bring public and private stakeholders together to make real headway in the energy sector. As IIJA programs begin to roll out, AEG plans to leverage its existing network and build new partnerships to take full advantage of this historic moment.
What is IIJA?
The IIJA contains both new funding streams and increased funding for existing programs that cover a range of issues affecting various aspects of the energy industry . The law provides much-needed funding for grid modernization, including $11 billion in grants for states, tribes and utilities to develop more resilient electric infrastructure, a $3 billion expansion of the Smart Grid Investment Matching Grant Program, and key support for weatherization projects. The IIJA also places significant emphasis on clean energy innovation and development, such as $8 billion devoted to establishing multiple regional clean hydrogen hubs, $6 billion to keep nuclear sites online, and $7 billion to be injected into battery supply chains. Overall, the IIJA’s more than $65 billion is the largest investment into clean energy in American history.
The next year will be absolutely crucial for stakeholders such as states, local utilities, municipalities, and private energy companies who hope to take advantage of these funding opportunities. The Department of Energy (DOE) has already issued Requests for Information (RFIs) for its hydrogen programs and other funding opportunities, and Requests for Proposals (RFPs) for the IIJA’s myriad clean energy programs are set to roll out as the federal government moves to get money flowing and projects off the ground.
Where does AEG fit in?
Successful grant proposals will require dynamic partnerships and collaboration across levels of government and the energy industry, and Advanced Energy Group is uniquely positioned to bring together both public and private stakeholders who can put together winning projects. From Chicagoland to San Juan, AEG has deep relationships with the local governments, utilities, and innovative energy companies who stand to benefit most from the clean energy programs in the IIJA.
AEG has built and maintained these relationships not through idle talk but by bringing diverse groups together to develop and implement 12 month sprints to tackle obstacles addressing health, energy and equity. The cycle of topics for AEG’s quarterly Stakeholder Challenges, from Grid Modernization to Critical Infrastructure, Equity, and Resilience, aligns remarkably well with many of the opportunities presented by the infrastructure act. AEG’s team stands ready to build upon this experience both to leverage existing task forces and partnerships and foster new collaborations between public and private stakeholders who want to take advantage of IIJA funding to meet their clean energy objectives.
Additionally, AEG’s track record of driving equity in planning and action in the energy sector will be critical in making sure IIJA investment benefits the Black, Latino and working-class neighborhoods that have faced generations of environmental racism and stand to face the most brutal effects of climate change. As the White House has touted, the IIJA directs significant resources to support the Biden administration’s efforts to ensure that 40% of federal climate and clean energy investment benefits historically disadvantaged communities. From the AEG New York 21Q3 task force’s report on energy usage at Hunts Point food market and its impact on the surrounding community to AEG’s facilitation of an Equity Action Challenge at the American Association of Blacks in Energy’s annual conference this year, AEG has shown a commitment to mobilizing stakeholders for equitable action in the energy space.
Getting dynamic proposals off the ground
One AEG task force, formed in March at the 22Q1 Critical Infrastructure, Equity, and Resilience challenge, has already hit the ground running in terms of developing an IIJA proposal that seeks to make a positive environmental justice impact. Spearheaded by Colleen Wright, VP of Corporate Strategy at Constellation, and including task force members from the Chicago Metropolitan Agency for Planning (CMAP), Patrick Engineering, and Northwestern University, this AEG task force is in the process of putting together a sweeping proposal for a clean hydrogen hub to be established in the Chicago area through the $8 billion IIJA hydrogen hub program. With the help of the GIS team at CMAP, this task force has put together a multi-layer GIS map that shows key factors such as the locations of intermodal stations, active power plants, and truck bottlenecks to help visualize optimal locations for a hydrogen power hub in the region.
Beyond the hydrogen hub proposal, AEG’s cycle of Stakeholder Challenges and task forces means that AEG has already developed teams and put together projects that stand to benefit greatly from IIJA funding. For example, the 21Q1 task force, which took on the project of developing a sustainability plan for Chicago’s Illinois Medical District, recently presented a plan that lays out multiple initiatives and metrics that will drive efforts to make the district a local leader in clean energy and sustainability. The more ambitious aspects of this plan, such as the development of intermodal transit hubs at nearby CTA stations, could benefit significantly from IIJA funding such as the Congestion Mitigation and Air Quality Program. This AEG task force has already completed a plan to make a convincing case to state and/or federal officials that the partnerships and momentum necessary for impactful clean energy investments are already in place.
A “convening power that is unique”
One key partner that AEG will be collaborating with on IIJA projects is Argonne National Laboratory, a Department of Energy science and engineering research center in Southwest Chicagoland. Mark Petri, Argonne’s Grid Security and Resilience Lead, sees a huge opportunity for AEG to play a role in helping stakeholders mobilize to receive federal investment.
“AEG already is a network of like-minded stakeholders in the energy sector and so it has a convening power that is unique,” Petri says. Additionally, Petri sees AEG’s multi-city network of diverse organizations, from government agencies to community groups to clean energy companies particularly valuable. “It’s one thing to have a community project that, say, puts in electric vehicle charging stations or improves building efficiency, but it’s another thing to be able to show that you can help disseminate the lessons learned from that process, so that other communities can emulate what you’ve done.”
This cross-network collaboration at every step of the solicitation process is exactly where AEG can be an asset for stakeholders who want to utilize this massive investment in clean energy. Whether building upon existing projects or forging new partnerships, AEG stands ready and eager to leverage its network and resources to build winning teams and proposals for IIJA clean energy funding. While AEG is already helping its network secure investments from the IIJA, we encourage organizations of all sizes and missions that have a stake in an equitable and resilient clean energy future—from small civic groups to giant utilities —to utilize AEG’s ability to bring the right stakeholders to the table. Both the demands and the opportunities of this moment are great, and AEG can play a critical role in meeting them.