This is the first blog post in a two-part series that Florida Policy Institute is publishing on federal infrastructure implementation. The next post will focus on the impacts of the Infrastructure Investment and Jobs Act and the Creating Helpful Incentives to Produce Semiconductors and Science Act.
Congress passed three sweeping pieces of legislation in late 2021 and 2022 — the Infrastructure Investment and Jobs Act (IIJA), the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, and the Inflation Reduction Act (IRA). Together, these three laws will invest over $2 trillion in federal funding to rebuild America’s infrastructure, accelerate the transition to a green economy, and create millions of new clean energy jobs.
So far, across all three pieces of legislation, FPI has tracked at least $3.6 billion in new federal commitments to Florida infrastructure projects — with more on the way — led by various state government agencies, investor-owned utilities, rural electric cooperatives, nonprofits, ports, universities, counties, cities, schools, private landowners and businesses, land trusts, and the Archdiocese of Miami. These investments will fundamentally reshape Florida’s public infrastructure.
IIJA and IRA are meant to work in tandem, so coordination and planning are crucial to maximizing impact and efficiency. Unlike many other states, Florida did not appoint an overall infrastructure implementation coorindator. The state’s approach also changed over time: first it refused, then quietly accepted $346.3 million in home energy and appliance efficiency rebates, and it has yet to set up the program (along with 47 other states). Florida was also one of five states that rejected $3 million for planning when the state declined Phase I of $5 billion in Climate Pollution Reduction Grant funding. Then, in September 2023, the five metropolitan areas that did apply learned they did not receive any funding. When required by law, however, state agencies have prepared deployment plans for certain initiatives, including EV charging.[2] Yet this deployment has been slow and politicized, even though the state has the second-most electric vehicles in the nation.
FPI will be tracking the impact of the new infrastructure investment programs in IIJA, IRA, and the CHIPS and Science Act; specifically how these programs impact everyday Floridians, especially communities with low income, communities of color, and under-resourced communities.
The IRA is not a single program but a puzzle of tax credits, loans, formula grants, and competitive grants spread across more than a dozen federal agencies. However, at its core, the legislation offers a crucial opportunity for state, local, and Tribal governments to play a much more active role in addressing cost-of-living crises, investing in communities, and tackling extreme weather impacts while transitioning to clean and renewable energy.
In the past, the federal government has incentivized clean energy mainly through tax credits, which does not help public and nonprofit entities since they are exempt from state and federal taxes. However, starting in 2023, as a result of the IRA's elective pay feature, the federal government will provide supercharged subsidies straight to these groups to develop clean energy while reducing reliance on private investors.[3] The Bipartisan Policy Center estimates that elective pay could double the impact of every federal dollar spent because private investors will not be drawing off some of the funds. That means Florida’s local governments and nonprofits could double the $3.6 billion the federal government invested. The tax credits also do not have a cap. The Brookings Institution estimates that the tax credits could deliver as much as $780 billion in investment and consumer savings instead of the initial $270 billion estimate. In fact, the Congressional Budget Office already rescored the law to reflect higher-than-expected green technology tax credit uptake.
The clean energy tax credits are a core equity lever. Unlike other tax credit programs, the bulk of IRA clean energy tax credits are tied to strategic equity outcomes: investing in domestic manufacturing, paying prevailing wages and apprenticeship programs, and directing investment into communities with low income. There are also bonus credits for locating projects in energy and communities with low income. For example, while the base amount for the Investment Tax Credit is just 6 percent for large projects that do not meet the prevailing wage and apprenticeship requirements, applicable entities can stack bonus credits to cover up to 70 percent of the cost basis of eligible projects. There is a loophole, however, for projects that produce under 1 megawatt: they automatically qualify for the 30 percent base credit.
While the IRA offers a critical opportunity for Florida governments, most of these programs, including the tax credit subsidies, are carrots, not sticks. Local and state governments could stall, leaving money on the table and ceding key siting and ownership decisions to private market actors alone.
The public and private sectors in states like Texas, Georgia, Nevada, and Arizona have been quick to capitalize on the new subsidies. Texas has created solar and storage resources faster than any other state since the IRA passed, with 35.6 gigawatts of clean energy capacity planned over the next 18 months, compared to Florida’s 2.2, even though Florida ranks third in the nation in rooftop solar energy potential.
Florida is one of only four states that bans power purchase agreements, requiring solar energy to be sold exclusively by utilities. This and other laws limit competition and favor utility monopolies over private enterprise, industry growth, and consumer cost savings. It also limits public sector potential. However, one workaround is long-term solar leasing. Seeing an opportunity with the IRA, the Empower Coalition in Alachua County developed one such solar leasing program to place solar panels on municipal and education buildings through 30-year lease agreements. The funding raised by the leases would be placed in a fund managed by the county, in partnership with a community coalition, and directed to benefit the most energy-burdened households.
So, what are the main things the IRA can do for Florida communities? Below, Florida Policy Institute reviews some of the key funding decisions and opportunities.
Clean energy is by far the largest funding sector in the IRA, receiving $250.6 billion out of the total $393.7 billion (64 percent). Funding methods include tax incentives, grants, and loans for clean electricity generation and storage, clean transportation, and electric vehicle incentives. While Florida's restrictive utility regulation, rising insurance costs, and storm risks pose challenges for scaling rooftop solar, public agencies and nonprofits can play a key role in accelerating the deployment of clean energy by leveraging their assets and elective pay to install building-scale solar and other clean technologies.
The Greenhouse Gas Reduction Fund (GGRF) is the largest allocation in the IRA at $27 billion. GGRF will promote overall green investment by enabling nonprofit and public sector developers to monetize tax credits and supercharging the Community Development Financial Institution sector (CDFIs are nonprofit community-based lenders) with $20 billion in new investment. GGRF capitalizes a whole new public and non-profit green finance sector, with the idea that these institutions will leverage significant additional private investment. There are 37 CDFIs operating across the state that will begin to see an uptick in green capital available for low-income lending. GGRF funds were obligated on August 16, 2024, so it is too early to tell how these new green finance intermediaries will operate in Florida.
The Florida Solar For All Coalition (FSFA), which includes the Solar and Energy Loan Fund — the one Florida-based nonprofit green bank — is the only direct GGRF recipient in Florida.[5] FSFA received $156.12 million to deploy rooftop solar energy systems, and it will prioritize the most energy-burdened households across the state. The coalition will focus on single-family homes and multi-family rentals in communities with low income. They are planning a soft launch this fall and a public launch in February 2025.
The first year of the communities with low income bonus credit program also had a big impact in Florida: in 2023, 2,603 facilities received the bonus, generating 31 megawatts of clean electricity and receiving a portion of approximately $3.5 billion in federal investment. This credit was designed to benefit households with low income and affordable housing developments.
So far, the single largest clean energy award likely goes to Seminole Electric and two rural electric cooperative co-applicants. Seminole is a generation and transmission cooperative that provides wholesale electric power to nine rural electric cooperatives in Florida, servicing over 2 million Floridians and 42 counties. Seminole will receive a portion of the $9.7 billion Empowering Rural America Program to build 700 megawatts of solar energy and create 3,400 short- and long-term jobs. By comparison, all of Florida’s utilities announced less than 800 megawatts of solar photovoltaic investment in the last four quarters.[6]
The IRA’s main policy to fund retrofits in households with lower income was left to the states, and unfortunately, that means many of the programs, including Florida’s, are stuck. The Florida Department of Agriculture and Consumer Services received $346.3 million to set up rebate programs for energy efficiency retrofits and appliance efficiency upgrades. The Whole Homes Rebate Program will provide rebates to households of low and moderate income for energy efficiency retrofits ranging from $2,000 to $4,000 for individual households and $2,000 to $4,000 per dwelling in multi-family buildings. The Home Electrification and Appliance Rebates are exclusively for households with less than 150 percent of Area Median Income to purchase high-efficiency equipment, with a rebate cap of $14,000 per household. The U.S. Department of Energy is currently reviewing the state’s application to set up the program.
Then there are the household clean energy and efficiency tax credits. Many of these credits go to consumers, and anyone who buys an eligible item qualifies. Households can deduct up to 30 percent of the cost of installing solar panels, insulating their homes, and purchasing other items to reduce energy bills and emissions. Housing developers are eligible for certain credits up to $5,000 to meet energy efficiency standards, and commercial buildings can receive credits for reductions in energy use.
Unfortunately, the benefits of these credits have accrued overwhelmingly to people with high income. IRS data revealed that the 25 percent of households with the highest income received 66 percent of the tax credits, worth a total of $5.5 billion, while the 25 percent with the lowest income received just $32 million. Governments and nonprofits must move quickly to ensure new investment opportunities equitably benefit people who cannot afford upgrades with a high upfront cost.
Dozens of Florida governments secured significant federal investments for new resilience infrastructure, which will remake streetscapes across the state. Though most initiatives in this area are fully allocated, the EPA Community Change Grant program, an environmental justice program, remains open through November 2024.
In 2023, USDA’s Urban and Community Forestry Program awarded over $29 million to 23 local and county governments in Florida to expand tree canopies — vital for heat mitigation — in urban, suburban, and rural communities. The Miami-Dade County Parks Department received $10 million to create a healthy urban forest in low-income areas with low tree canopy and restore critical habitats in under-resourced communities. Florida is the hottest state in the contiguous United States, with the highest number of heat-related illnesses. Tree canopy coverage is below 10 percent in one out of five Miami ZIP codes.
In 2024, the U.S. Department of Transportation awarded three city governments and one Tribal government in Florida more than $209 million to reconnect communities cut off by inequitable transportation infrastructure decades ago, leaving neighborhoods without direct access to opportunity, schools, and essential services. The $147 million the City of Jacksonville secured to complete the Emerald Trail was the largest one-time federal grant the city has ever received. The 30-mile Emerald Trail will connect 14 historic urban neighborhoods to downtown, the St. Johns River, McCoys Creek, and Hogans Creek. The Emerald Trail will link 16 schools, two colleges, three hospitals, 21 parks, and the Regional Transportation Center, among other destinations.
While Florida has yet to receive any funds from the EPA Community Change Grant program, the Alachua County Empower Coalition intends to apply for this funding for their solar leasing program. Community Change grants will fund $10 million-$20 million community-driven projects that address climate challenges and reduce pollution while strengthening communities through thoughtful implementation. Numerous coalitions from across the state applied for funding, and all funding is expected to be committed by year’s end.
The IIJA includes several important grant programs for cleaner air that have already directed hundreds of millions to Florida schools and municipalities — and much more funding is likely on the way. Two important IRA programs, the Clean Heavy Duty Vehicles and Clean Ports Program, are slated to announce the recipients of $4 billion in additional funding by the end of 2024. There will also be awards announced soon for Air Monitoring and Air Quality Sensors Grants.
Two IRA tax credits will benefit the same schools that just received school buses through the IIJA’s Clean School Bus Rebate Program. One credit is for commercial clean vehicles, with up to $40,000 available for each vehicle weighing more than 14,000 pounds. The second is for alternative refueling properties that allows for a tax credit of up to 30 percent of project costs, up to $100,000, that can be used for each unit of charging infrastructure in low-income and non-urban areas if school districts meet prevailing wage and apprenticeship requirements.[4]
Up to this point, 378 electric school buses have been committed to Florida school districts, so the commercial clean vehicles tax credit alone could add $15,120,000 to Florida school district budgets, depending on how the school districts claimed the IIJA rebates and purchased the buses. [7]
Notes
[1] $650 billion of $1.2 trillion of IIJA spending is reauthorizations of existing programs, for items like highway formula funding, which are excluded from this calculation. For more about the current highway funding formula, see here. FPI will focus on tracking the impacts of the new federal investment programs in IRA, IIJA, and the CHIPS and Science Act. FPI is still updating its database and expects this figure to grow.
[2] ~$75 billion of formula grants in IIJA require state plans. For one example, see Florida’s Electric Vehicle Infrastructure deployment plan here.
[3] The production tax credit and the investment tax credit are the primary credits project developers will claim to install new clean power sources.
[4] Florida repealed its prevailing wage law in 1979, so it follows rates set by the U.S. Department of Labor under the Davis Bacon Act. Executive Order 14026 applies to most new covered workers, setting the wage floor at $17.20/hr.
[5] The Florida Solar For All Coalition is a partnership between Solar United Neighbors (SUN), The Nature Conservancy, and St. Lucie-based Solar and Energy Loan Fund (SELF).
[6] See here. Duke Energy Florida, LLC and Florida Renewable Partners (an affiliate of Florida Power & Light) each announced 225 megawatts of new solar photovoltaic investment over the last four quarters.
[7] Applicable entities cannot derive excess benefit to exceed the costs basis of the applicable purchase under IRS guidelines.
American Rescue Plan Act Changes. The American Rescue Plan Act of 2021 extended PEUC and PUA benefits through the week ending September 6, 2021. It also increased the maximum duration of PEUC benefits ($300 a week) to 53 weeks and the maximum duration of PUA to 79 weeks. Although PEUC and PUA did not end until September 6, 2021, Florida withdrew from the Federal Pandemic Unemployment Compensation Program (FPUC) effective June 26, 2021. FPUC provided persons who were out of work due to COVID-19 with an additional $300 a week in unemployment insurance.
Reemployment Assistance weeks reverted to 12 effective January 1, 2022. DEO determines the maximum number of weeks available to RA claimants based on a statutory formula that looks at the average unemployment rate for the most recent third calendar year quarter (i.e., July, August, and September). Based on the downturn in unemployment, the maximum number of weeks for RA reverted to 12 effective January 1, 2022.
RA work-search and work registration requirements reinstated on May 30, 2021. Persons filing an application for RA benefits beginning March 15, 2020, are not required to complete work registration in Employ Florida through May 29, 2021. In addition, work search requirements for individuals requesting benefits for the weeks beginning March 15, 2020, were also reinstated on May 30, 2021.
RA biweekly reporting requirements reinstated. Although previously waived, biweekly reporting was reinstated effective May 10, 2020. DEO’s guide to claiming weeks is here.
Mobile app deployed. DEO has deployed a mobile app for RA applications.
DEO announces extended benefits. DEO announced implementation of Extended Benefits (EB).
Resources and guidance. For a list of resources and guidance from the United States Department of Labor on unemployment insurance and COVID-19, go here.
For DEO’s “Reemployment Assistance Frequently Asked Questions and Additional Resources,” updated 12/30/2020, go here.
For DEO’s latest claims data, go here.
DCF opens offices. DCF has reopened its brick-and-mortar storefronts, which were previously closed due to coronavirus.
DCF adds call center numbers. DCF has added a call center number for Monday through Friday, from 7 a.m. to 6 p.m. Call center numbers now include 850-300-4323, 866-762-2237, or TTY 1-800-955-8771.
Certification periods extended by 6 months only through August 2020. Certification periods for cash, food and medical assistance were extended by 6 months for individuals and families scheduled to recertify in April through August 2020. FNS’ approval of the SNAP extension for August is here. However, effective September 1, 2020, SNAP, TANF and Medicaid recertifications have been reinstated, although DCF says that no one will lose Medicaid due to recertification.
DCF allows phone interviews. Phone interviews are now being used for TANF cash and SNAP food assistance.
Mandatory work requirements suspended only through May 2021. Under a directive from Governor DeSantis to waive work requirements for safety net programs, DCF waived work requirements for individuals participating in the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) through May 2021. To do this, DCF explains that it partnered with the Department of Economic Opportunity to apply “good cause” statewide for TANF and SNAP recipients who would otherwise be subject to participation in mandatory work requirements as a condition of receiving those benefits. Through May 2021, persons who were sanctioned in the past due to work requirements will be able to reapply and participate in SNAP or TANF again.
Work requirements were reinstated effective June 1, 2021.
Emergency allotments (EA) ended. DCF automatically supplemented SNAP allotments of current recipients up to the maximum for a household’s size for July 2021. However, EA was discontinued beginning August 1, 2021.
The SNAP benefits increase by 15 percent ended in October 2021. Floridians who participate in SNAP to put food on the table will receive a temporary 15 percent supplement to SNAP under COVID relief passed by Congress and extended by the American Rescue Plan Act through September 2021.
FNS permanently increases SNAP through revamp of the Thrifty Food Plan. Effective October 2021, FNS has mandated a permanent increase to SNAP through a revamp of the Thrifty Food Plan. DCF says that the increase amounts to about 6% for Floridians.
Time limits suspended. SNAP time limits are suspended during the COVID-19 public health emergency. No one in Florida should be barred from SNAP due to time limits, even if they exhausted their time limit in the past.
Florida granted waiver to allow families to purchase groceries online. DCF has been granted a federal waiver to permit the State of Florida to launch a pilot project statewide effective April 21, 2020, that allows families to purchase groceries online with their Electronic Benefit Transfer (EBT) card instead of going into stores.
No Medicaid terminations from March 2020 through the end of the federal public health emergency. The national public health emergency has existed since January 27, 2020 and has been renewed by the Secretary of the U.S. Department of Health & Human Services in 90-day increments since that time. The most recent renewal is effective January 16, 2022.
On March 31, 2020, AHCA alerted providers and DCF posted on the ACCESS website that:
Redetermination/recertification times are reinstated. As of October 1, 2020 AHCA's website is alerting recipients that the Department of Children and Families is now mailing letters for case reviews to check if a household is still eligible for Medicaid and/or Medically Needy. AHCA is urging people receiving these letters to take steps now to re-apply. But note, Medicaid coverage will not end during the COVID-19 Public Health Emergency. In January 2021 DCF conducted one-year “automated renewals” for people whose sole income is social security and SSI and are enrolled in an SSI-related Medicaid program (e.g., MEDS/AD, Medically Needy and Medicare Savings Programs). People getting VA income were not included in the automated renewal.
Extended application time. Effective with applications filed in February 2020, the time for submitting documentation required to process an application is extended for 120 days from the date of the application and eligibility will still be effective the first day of the month the application was received. Effective July 1, 2021, this policy has been rescinded. Medicaid applications submitted on or after July 1, 2021 may be denied on the 30th day after application or the day after verification information is due. Applications filed prior to July 1, will be allowed 120 days to provide requested verification to establish Medicaid eligibility.
Exclusion of additional unemployment payments in determining eligibility. The $600/week of additional unemployment insurance payments under the CARES Act will not be counted as income in determining Medicaid eligibility. (However, these payments will be counted as income in determining marketplace subsidy calculations.)
Coverage of Medicaid services during the state of emergency
COVID-19 Vaccines for Medicaid Enrollees. In an executive order published March 16, 2021 Governor DeSantis revised the vaccine distribution plan, which applies to the general public including Medicaid enrollees, to lower the age requirement to 40 effective March 29, 2021 and then effective April 5, 2021 all Floridians are eligible to receive any COVID-19 vaccination approved by the Food and Drug Administration.
Medicaid enrollees eligible to receive the vaccine may visit myvaccine.fl.gov to find a location distributing the vaccine and to schedule an appointment.
On March 12, 2021, AHCA published instructions for Medicaid enrollees on how to obtain Medicaid transportation once they have scheduled an appointment for a vaccine. AHCA states: "Florida Medicaid will take you to get the COVID-19 vaccine at no cost. All you need to do is set up a time to get your vaccine. Next, let your Medicaid plan know you need a ride and they will take care of the rest. If you are not enrolled in a plan, call the Medicaid Helpline at 1-877-254-1055 to find out the name and phone number for a transportation service."
The state has also recently launched a new email system to help bring COVID-19 vaccines to homebound seniors. Seniors will be able to sign up to have the vaccine come to them by emailing a request to HomeboundVaccine@em.myflorida.com.
AHCA has posted Medicaid Alerts and FAQs providing more detail on Medicaid service changes in response to COVID-19. They address a wide range of topics including, but not limited to: telemedicine guidance for medical, behavioral health, and early intervention services providers; long-term care provider network flexibilities allowing more types of providers to deliver specified long term care services; and continuity of care for adult day care center enrollees during the time these centers are closed.
AHCA is loosening coverage restrictions for behavioral health services. Effective May 5, 2020, all prior authorization requirements for mental health or substance use disorder treatment are waived and service limitations (frequency and duration) are lifted. For behavioral analysis services, current authorizations will be extended through an "administrative approval process" which does not require providers to reassess beneficiaries currently getting services. Effective July 1, 2021 service limits will be reinstated for behavioral health services and effective July 15, 2021 Medicaid prior authorization requirements will be reinstated for behavioral health services.
Per a May 29, 2020 provider alert, during the state of emergency AHCA will be reimbursing providers for telemedicine well-child visits provided to children older than 24 months through age 20. Providers are directed to actively work to schedule follow-up in-person visits to administer immunizations and other physical components of the exam which cannot be accomplished through telemedicine.
Coverage of home and community-based waiver services (HCBS) - In response to the public emergency, Florida obtained approval from the federal government to make changes in HCBS waiver programs, including the Long Term Care and Developmental Disabilities programs. The changes are effective retroactively from January 27, 2020 to January 26, 2021. Details can be found here. They include, but are not limited to:
Note on COVID-19 testing, treatment, and vaccines for the uninsured. Florida has not opted to receive 100 percent federal Medicaid funding for COVID-19 testing of people without health insurance. Under the 2021 American Rescue Plan Act this option has been expanded to cover COVID-19 treatment and vaccines for the uninsured as well. Since the state has not taken up this option Floridians must look to an uneven patchwork of free testing, treatment, and vaccine resources scattered around the state. AHCA advises that uninsured people may receive free testing from their county health department or a federally qualified health center and that “many communities provide testing for free for individuals who do not have insurance. Please [click here] to find a test site in your area. Uninsured individuals should ask before the test whether testing is free of charge." There are no state agency instructions on where uninsured people can receive free treatment. However, more information on possible sources for free treatment is available here.
Residency proof no longer required at some vaccine sites, “paving the way for migrants.” - On April 29, 2021 Surgeon General Rivkees issued a new public health advisory specifying that COVID-19 vaccines are available to “a Florida resident” or someone “who is present in Florida for the purpose of providing goods or services for the benefits of residents and visitors of the State of Florida.” This new policy applies to all state-run and federally supported vaccination sites. It rescinds an advisory issued in January that had restricted vaccinations to people who could show proof of Florida residency
2021 unemployment compensation claimants can access free or reduced cost health insurance through the ACA marketplace. The Affordable Care Act (ACA) Marketplace was re-opened in February 2021 to give people who need health insurance a new “special enrollment" opportunity to get covered. The 2021 American Rescue Plan eliminated or vastly reduced premiums for many people with low or moderate incomes.
Starting July 1, 2021, people who received or have been approved for unemployment compensation for any week beginning in 2021 can access free or reduced cost comprehensive health insurance plans through the ACA marketplace. This benefit is available regardless of someone's current income. To get this benefit, people must enroll in the marketplace no later than August 15, 2021. For help with enrollment, contact Covering Florida at 877-813-9115.
School children in distance learning still eligible for free or reduced cost meals. Students in distance learning for 2020-21 can still receive school meals through the National School Lunch Program if they are eligible. The student or parent/guardian may pick up meals at the school but should contact their school for more information.
For a list of current child nutrition program waivers for Florida from USDA, go here.
Congress allows increased fruit and vegetable benefits. At present, WIC provides $9 for children and $11 for women monthly for fruits and vegetables. The American Rescue Plan Act makes funding available for a four-month increase in the benefit of up to $35 monthly, if a state chooses to do so.
DOH attains waiver allowing remote issuance: Department of Health (DOH) obtained a waiver of the requirement that participants pick up their EBT cards in person at recertification or during nutritional education appointments.
WIC participants allowed to substitute certain food. Under a waiver from USDA, WIC participants in Florida are allowed to substitute milk of any available fat content and whole wheat or whole grain bread in package sizes up to 24 oz. when 16 oz. packages are unavailable.
USDA waived physical presence requirements: Although the scope and logistics are unclear at this time, USDA has given DOH permission to waive the requirement that persons be physically present at each certification or recertification determination in order to determine eligibility under the program through May 31, 2020.
USDA extends certification periods through May 31, 2020, for some participants.
For a list of current WIC waivers for Florida from USDA, go here.
HHS provides guidance. HHS has issued guidance on the flexibilities in TANF to respond to COVID-19.