How does the People's Climate and Equity Plan relate to the Inflation Reduction Act?

New federal funding is available for the transition to clean energy via the Inflation Reduction Act (IRA). The IRA is a significant tool to address climate pollution, but alone it is not enough. Without coordinated local efforts, federal rebates and tax incentives will be accessed by a handful of moderate and high-income households.

The People’s Climate and Equity Plan would provide the investment and infrastructure needed to transform Minneapolis neighborhood by neighborhood, instead of house by house. It would make IRA funding accessible to all residents, regardless of income, race or zip code. It would allow Minneapolis to meet climate goals on a timeline that matters and at the same time address serious racial disparities in our city.

What is the People's Climate and Equity Plan (PCEP)?
The PCEP is a proposal to invest in Minneapolis’ transition to clean energy, rooted in racial, economic, and environmental justice. The PCEP would ensure all benefits including jobs, health improvements and wealth creation are accessible to low-income communities of color.
What is the Inflation Reduction Act (IRA)?
The IRA is the beginning of the biggest investment the United States has ever made in addressing climate change and transitioning to a clean energy future. The IRA will invest $369 billion in climate solutions and clean energy transition over the next decade.
Make every building comfortable, affordable, and carbon-free by 2030
How does the IRA support this goal?
  • Provides up to $14,000 per household for energy efficiency and electrification measures, including: heat pumps, HVAC, electric appliances like water heaters, stoves and clothes dryers, upgrades to circuit panels, insulation, air sealing, ventilation, and wiring.
  • 30% reduction on the cost of rooftop solar, in the form of tax credits
  • $40 billion in loans for deployment of innovative clean energy technologies such as geothermal
  • 10-20% bonus for some projects in low-income communities
Why local investment is needed
  • Some IRA programs are targeted specifically to benefit low- and moderate-income families, but most spending is in the form of tax incentives that largely benefit moderate- and high-income households.
  • Local investment will help ensure that families at all income levels have access to healthy, clean energy homes and the ability to build wealth through community ownership of clean energy projects. It will also enable the city to tap into new renewable resources such as networked geothermal that would be accessible only when shared across a neighborhood.
Build community wealth and reduce the racial wealth gap
How does the IRA support this goal?
  • Bonuses for businesses that pay prevailing wage and/or hire workers from registered union apprenticeship programs
  • Significant business opportunities for BIPOC and worker owned cooperatives, but no direct investments
  • Environmental and climate justice block grants ($3 billion) for disadvantaged communities to address disproportionate health and environmental harms from pollution and climate
  • Greenhouse Gas Reduction Fund ($27 million, at least 60% of funds for disadvantaged communities) for projects that reduce emissions.
Why local investment is needed
  • The People’s Climate & Equity Plan will develop pathways for people from marginalized communities to move into union apprenticeships and remove barriers to accessing the higher-paying union jobs created by the IRA.
  • By supporting the development of BIPOC worker-owned businesses and cooperatives in the clean energy economy, the People’s Climate & Equity Plan will help reduce racial wealth disparities.
Ensure every person has a safe, healthy and climate-resilient neighborhood connected by accessible, carbon-free transportation
How does the IRA support this goal?
  • Funding for commercial clean vehicles ($1 billion) to electrify buses and garbage trucks with a specific focus on communities overburdened by pollution
  • Neighborhood access and equity grants ($3 billion) to reduce pollution in underserved communities along major transportation corridors
  • Tree planting in cities
  • Tax credits for both new and used clean vehicles, which helps with decarbonization and pollution
Why local investment is needed
  • Cities need to partner with disadvantaged communities to secure IRA funding for pollution reduction and rollout of urban forest. That means investing in staff capacity.
  • And while support for electric vehicles is good, that solution is not accessible to everyone. The People’s Climate & Equity Plan can help Minneapolis reduce reliance on cars, which is necessary for achieving the necessary emissions reductions in the transportation sector.

Sign in support of People's Climate & Equity Plan

The city of Minneapolis is working on a new 10 year climate action plan, but there is no money in the current budget for climate solutions.

We’re asking the mayor and city council to create a new fund and invest to make sure everyone has access to the benefits from new federal climate funding. Without a People’s Climate & Equity Plan, only a handful of wealthier households will benefit from new federal dollars.

This is our opportunity to completely transform Minneapolis, and make healthy homes and green jobs available to all. This is the moment to go big that may never come again.