Updated 09.20.2024
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Climate Governance and Equity

Environmental Justice Community Investment Requirements

Environmental justice (EJ) community benefit requirements are provisions to help ensure communities most impacted by environmental burdens are benefitting equitably from public programs. This policy typically requires that a certain percentage of funds and/or benefits from state climate and clean energy investments are allocated to environmental justice communities; a stronger policy requires a percentage of funds to be directly invested into projects in EJ communities, whereas weaker policies may only require a certain percentage of the benefits from investments to be directed toward EJ communities, which is less direct, more difficult to implement, and gives governments the power of discretion in identifying benefits to communities historically underserved by those governments. In addition, strong policies apply to a wide array of state climate- and environment-related investments, in comparison to investment requirements specific to a certain program or funding opportunity.

Investment in these communities seeks to reconcile the gap left by environmental racism and a lack of opportunities to meaningfully engage in zoning, development, implementation, and enforcement of environmental laws. In some states, this funding comes from fees paid by polluters, while others appropriate state funds to protect EJ communities. At the federal level, the Justice40 Initiative set a goal that 40% of the overall benefits of federal climate, clean energy, and water infrastructure investments flow to disadvantaged communities.

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Glossary of Terms

States with Policy Enacted

In Progress

Partially Enacted

See States List

Key Resources

Glossary of Terms

A Call to Invest in Community Power: Lessons from 10 Years of California Climate Investments for the State and the Nation

A report highlighting 10 lessons for creating and implementing equity-focused climate investments.
2024
Source:

Fighting Redlining and Climate Change with Transformative Climate Communities

A report analyzing the efficacy of the Transformative Climate Communities, a program in California that directs funding from the state’s cap-and-trade program to underserved communities, in creating community-centered governance and delivering meaningful community benefits.
2021
Source:

The Climate Leadership and Community Protection Act’s Environmental Justice Promise

A report analyzing New York’s Climate Leadership and Community Protection Act as to how it will address environmental justice issues, including lessons learned from other states in directing investments to EJ communities.
2021
Source:

Greenlined Economy Guidebook: Transforming Community Development, Transforming Our Economy

A report featuring a framework and policy recommendations for strong, equitable community investment requirements.
2020
Source:

Model States

Glossary of Terms

California

At least 25% of investments from cap-and-trade revenue must go to disadvantaged communities and 10% to low-income communities, individuals, and households.

2016
Establishing Policies

Colorado

At least 40% of renewable energy programs, incentives, and direct investments must benefit low-income customers and disproportionately impacted communities.

2021
Establishing Policies

New York

At least 35%, with a goal of 40%, of clean energy and energy efficiency investments must benefit Disadvantaged Communities.

2019
Establishing Policies

Washington

At least 35%, with a goal of 40%, of cap-and-invest revenue must benefit overburdened communities and and at least 10% to investments formally supported by Indian tribes.

2021
Establishing Policies

Environmental Justice Community Investment Requirements By State

Glossary of Terms
Filters
Status State Region Components YR Enacted
Not Enacted
Alabama

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Alaska

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Not Enacted
Arizona

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southwest
Not Enacted
Arkansas

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Enacted
California

At least 25% of investments from cap-and-trade revenue must go to disadvantaged communities and 10% to low-income communities, individuals, and households.

Establishing Policies
West 2016
Enacted
Colorado

At least 40% of renewable energy programs, incentives, and direct investments must benefit low-income customers and disproportionately impacted communities.

Establishing Policies
West 2021
Not Enacted
Connecticut

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
Delaware

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Florida

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Georgia

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Hawai‘i

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Not Enacted
Idaho

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Enacted
Illinois

At least 25% of Illinois Solar for All funding must be allocated to projects within EJ communities.

At least 45% of transportation electrification funding must be directed to environmental justice communities.

Establishing Policies
Midwest 2017
Not Enacted
Indiana

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Iowa

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Kansas

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Kentucky

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Louisiana

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Maine

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
Maryland

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Massachusetts

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
Michigan

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Minnesota

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Mississippi

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Missouri

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Montana

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Not Enacted
Nebraska

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Nevada

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Not Enacted
New Hampshire

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
New Jersey

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
New Mexico

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southwest
Enacted
New York

At least 35%, with a goal of 40%, of clean energy and energy efficiency investments must benefit Disadvantaged Communities.

Establishing Policies
Northeast 2019
Not Enacted
North Carolina

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
North Dakota

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Ohio

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Oklahoma

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southwest
Not Enacted
Oregon

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Not Enacted
Pennsylvania

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
Rhode Island

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
South Carolina

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
South Dakota

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Tennessee

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Texas

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southwest
Not Enacted
Utah

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West
Not Enacted
Vermont

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Northeast
Not Enacted
Virginia

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Enacted
Washington

At least 35%, with a goal of 40%, of cap-and-invest revenue must benefit overburdened communities and and at least 10% to investments formally supported by Indian tribes.

Establishing Policies
West 2021
Not Enacted
West Virginia

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Southeast
Not Enacted
Wisconsin

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 Midwest
Not Enacted
Wyoming

Environmental justice (EJ) community investment requirements help ensure communities most impacted by environmental burdens are benefitting equitably from public programs by requiring a certain percentage of funds and/or benefits from other policies are allocated to EJ communities.

 West

The State Climate Policy Dashboard tracks only passed policies and does not include bills currently proposed in legislative sessions. The website is intended to illustrate the current status of policies for each state, as well as key resources and model states for each policy.

Much of the information contained in this database is derived from the public domain, with links to resources provided. The information provided is made available solely for general information purposes and does not constitute legal advice. Click here for full Terms of Use.

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