How electrification program frameworks could be the key to accessing and managing GGRF program funds.
The push for clean energy solutions has never been greater. Programs like the Greenhouse Gas Reduction Fund (GGRF) are designed to spark transformative change nationwide. GGRF funding represents a historic opportunity for community development banks such as Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) to access $27 billion in funding and quickly, efficiently, and successfully deploy affordable, and accessible financial assistance to qualified projects.
However, with the change in administration, the landscape of the GGRF program may change dramatically, and access to funds may be limited. For community bank leaders, it may be vital to ensure institutions have the skills, experiences, and infrastructure to scale a GGRF program clean energy project. As a clean energy project lender examines their ability to scale clean energy projects to align with GGRF funding requirements, one question stands out: Do we need to start from scratch? The answer is simple—no.
The solutions are already here. Over decades, utility and state demand-side management (DSM) and electrification programs have built tried-and-true frameworks. These programs, built to achieve large-scale energy efficiency and electrification goals under tight regulatory oversight, have lessons and practices that are just as relevant now as they were then.
What Can We Learn from DSM and Electrification Programs?
Programs focused on cutting energy use and advancing electrification have faced—and solved—many of the same challenges we see with clean energy financing and deployment. These programs have fine-tuned systems for:
- Handling High Transaction Volumes: Managing thousands of projects efficiently and with clear accountability.
- Navigating Rigorous Compliance Standards: Meeting complex regulatory and environmental requirements with detailed reporting and oversight.
- Advancing Equity Goals: Ensuring underserved communities are included through targeted outreach and support.
- Delivering Measurable Results: Demonstrating clear impacts in energy savings, reduced emissions, and economic benefits.
These capabilities are the building blocks for success in clean energy projects funded by programs like the GGRF.
A Framework for Clean Energy Success
At their core, DSM and electrification programs rely on structured approaches that include project development, technical vetting, regulatory compliance, and pipeline creation. These methods have been proven to work—and they’re ready to be applied to clean energy financing initiatives.
- Pipeline Development: Building a steady flow of projects through collaboration with manufacturers, distributors, and other supply-side actors; partnering with end-user trade associations; and engaging community stakeholders to identify projects that align with local priorities.
- Project Development: Using energy advisors who offer unbiased, third-party guidance to help customers identify and design projects tailored to their needs. These advisors ensure projects are effective, cost-efficient, and aligned with program goals—without the influence of vendors pushing specific products.
- Technical Vetting: Leveraging proven tools like Technical Resource Manuals (TRMs) and the Performance Measurement Protocol (PMP) to calculate energy savings, cost-effectiveness, and emissions reductions. This ensures projects meet rigorous standards and deliver measurable outcomes.
- Regulatory Compliance: Simplifying the navigation of complex rules. For instance, the Davis-Bacon Act—requiring prevailing wages—is a common requirement for federally funded weatherization programs. Embedding these kinds of compliance standards into processes helps ensure projects meet requirements without added stress.
- Workforce Development: Partnering with local service providers to deliver clean energy solutions directly to end-users. This strategy creates jobs, supports local economies, and ensures a trained workforce is ready to meet growing demand.
These strategies aren’t hypothetical. They’ve been refined and proven over years of practical experience, giving us a clear roadmap for implementing programs like GGRF effectively.
Why This Matters Now
GGRF isn’t just about funding clean energy projects—it’s about reducing emissions, creating jobs, and delivering meaningful benefits to disadvantaged communities. To achieve these goals, we need the kind of efficiency, equity, and accountability that DSM and electrification programs have already mastered. By applying what works, we can scale clean energy projects faster, more effectively, and with greater impact.
Looking Ahead
The clean energy transition is moving quickly, and the lessons we’ve learned over decades of DSM and electrification programs can guide us forward. These frameworks provide the tools we need to meet today’s challenges with confidence.
By leaning on best practices, we can make progress that’s efficient and impactful. Every project becomes a step toward our shared goals—reducing greenhouse gas emissions, fostering equity, and driving economic growth.
Sometimes the smartest path forward is the one we’ve already been walking—one built on a foundation of experience, innovation, and success.
About Energy Infrastructure Partners (EIP)
EIP helps lenders choose and manage clean energy projects. We work with community banks and green banks to build their energy lending portfolio and we understand the urgency to act with speed to find, vet, and fund projects in alignment with the Greenhouse Gas Reduction Fund (GGRF) funding guidelines. Our experience in credit analysis, financial structuring, and technical engineering means we are uniquely positioned to support lenders and sub-awardees in developing project and contractor pipelines. We can help you vet clean energy project financing opportunities and keep your portfolio on track.
Learn more about how we help lenders choose and manage clean energy projects, by visiting our Clean Energy Project Lender Services page, or contact us at www.energyinfrapartners.com/contact.
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