Industry Insights
The Pivotal Role of IIJA in the Decarbonization Movement
August 25, 2023
In recent years, adoption of sustainable practices by utilities and cities has transitioned into closer monitoring of carbon regulations and decarbonization initiatives. This shift is taking place during a pivotal time as the world continues to grapple with the increasing impacts of climate disruption, ranging from power outages, water scarcity, severe weather events and more. While there may not be a quick-fix solution, the billions of dollars awarded by the Infrastructure Investment and Jobs Act (IIJA) is a solid place to start.
Itron is excited to continue our blog series focused on bridging the gap between IIJA funding, utilities’ sustainability initiatives and Itron solutions. In the first blog of the series, we provided an overview of IIJA funding and Itron solutions to match. The second blog of the series highlights the transition to electric school buses and the implications of the EPA’s Clean School Bus Rebate Program. In this next blog of our IIJA series, we’re taking a closer look at the pivotal role IIJA funding plays in accelerating utilities’ and cities’ carbon reduction initiatives, and how Itron solutions and technologies can help. Let’s get into it.
According to research Itron conducted with U.S. utility executives, most utilities and cities are aware that IIJA funding is available but are unsure what to apply for and the impact it can have on their operations. A key IIJA funding opportunity all utilities and cities should have on their radar is the Carbon Reduction Program (CRP). The CRP was established after the IIJA was signed into law and provides funds for projects designed to reduce transportation emissions from on-road highway sources1. Types of projects eligible to receive CRP funding include smart street lighting, traffic management devices and transportation replacement with energy-efficient alternatives as well as the installation of intelligent infrastructure communications equipment2. Since the passage of IIJA, CRP has awarded over $2 billion so far and will award approximately $4 billion more through 2026.
Legacy streetlights represent up to 30 to 40 percent of a city’s energy bill. With up to 50 percent energy savings and 20 percent operational savings to be gained through an LED upgrade with controls, smart street lighting is the ideal first step on the path to reducing greenhouse gas emissions and becoming a smart city. Traditionally, cities and transportation agencies have relied on static models to estimate energy and carbon generation. However, with networked smart streetlights and a comprehensive Central Management System (CMS) like Streetlight.Vision in place, communities can accurately measure consumption, energy savings and carbon reduction for validation and reporting. Additionally, under a carbon collaboration framework, cities and utilities can leverage their infrastructure to address other critical issues like heat island remediation, air quality improvements, traffic and pedestrian management while keeping the marginal costs to a minimum. Beginning with a proven anchor application like smart lighting provides cities and utilities with immediate operational and cost savings benefits along with greater flexibility for future smart city applications and growth.
As utilities and cities look to take advantage of IIJA funding and continue to work toward net-zero emissions, it is critical to view smart streetlights as a key piece of the puzzle. The savings achieved through smart lighting and additional smart city sensor applications layered in over time can contribute significantly to reduced carbon emissions and improved community safety.
Adjusting to the Rapid Adoption of Electric Vehicles
CRP and CMAQ funding can also be used to address challenges that are top of mind for utilities and cities everywhere: the rapidly increasing adoption of electric vehicles (EVs) and the change of medium to heavy fleets. By 2032, 25 percent of all heavy trucks and 2/3 of all cars produced in the U.S. must be EVs4. As vehicle fleets move electric, both fleet owners and utilities need to think through how to charge them. Working with Itron solutions that consider the requirements and needs of both utilities and fleet owners provides flexibility, customization and the knowledge required to plan, budget and implement a successful electrification transition. Our solutions also remove the barriers that many utilities and cities encounter with the adoption of EVs, such as supply chain delays, coordination between utilities and transit districts and other related challenges.
Itron’s EV solutions enable utilities, cities and fleet operators alike to utilize a scalable approach to plan and operate EV fleets that are effectively integrated within utility systems. These solutions support EV charging program rollouts for our partners across the major charging segments (fleet, public/semi-public and residential) using software and services to help with infrastructure planning and deployment, and then managing operations to maximize investments. By ensuring that charging assets work in harmony across the grid, Itron’s EV solutions enable end customers to better manage their fuel costs, utilities to protect the grid and deliver reliable service and most importantly, reduce greenhouse gas emissions.
Continuing on the Path to a Decarbonized Future
Itron is proud to help utilities and cities make the most of IIJA funding to accelerate their decarbonization efforts. Together, we are well on our way to creating a more resourceful world.
Sign up for future information and announcements related to IIJA at www.itron.com/iija and stay tuned for next month’s blog of our IIJA series that will dive into the role of Metropolitan Planning Organizations (MPOs) and their influence on how this funding is allocated. IIJA will also be discussed in detail at Itron Inspire 2023, where utility and industry leaders will share the tangible lessons learned on the process and how to position for future rounds of funding. Register here for an opportunity to learn about key uses cases in AMI, distributed intelligence, grid resiliency and distribution automation that are applicable to IIJA and how it can serve as a path to help you deploy these solutions at scale.
For information about IIJA eligibility, application and implementation support, reach out to Dave Stensland, business development director, IIJA.