Riding the Green Wave of Funding: Charter Schools Benefit from Federal Facilities Funding

This blog was originally posted at the National Alliance for Public Charter Schools on Sept 4, 2024

Over the past few years, federal funding has begun to flow in unprecedented levels to sustainable development and decarbonizing America. This “green wave” is especially relevant to schools where billions of dollars can be spent to improve facilities and buses. While many traditional school districts have resources to help apply for these capital opportunities, small charter schools with limited resources are now finding ways to benefit as well.

One way to secure these funds is by partnering with community development organizations. For example, Charter Schools Development Corporation (CSDC) and Raza Development Fund (RDF) recently received a prestigious Renew America’s Schools grant through the Department of Energy, securing almost $25 million in federal funds to upgrade charter facilities in their portfolios. Renew America’s Schools aims to help “K-12 public school districts across America make energy upgrades to decrease energy use and costs, improve indoor air quality, and foster healthier learning environments.”

CSDC, a nonprofit lender and real estate developer, created the Charters RISE program (Renovating for Innovative Sustainable Education) to unlock more funds for clean and energy efficient renovations. CSDC, in partnership with Bloomwise Partners and design firm Ameresco, will use these Renew America’s Schools funds to help 13 charter schools in low-income neighborhoods lower their energy bills, replace roofs and windows, and upgrade or replace electrical and mechanical systems. Charters RISE promotes climate education, quality jobs, and workforce development partnerships making a lasting impact in the community and the schools where upgrades will save operating costs to fund up to two teachers’ salaries per school.

Capitalizing on the same grant, RDF will launch its Green Equity Fund for Schools which aims to reduce the disproportionate impact of climate change within Latino and other under-resourced communities. RDF has partnered with 12 cost-constrained, community-led charter schools serving disadvantaged communities mainly located in the Southwestern and Western U.S. to identify and implement needed energy improvements. Along with its partners, including GreenLink Education and UnidosUS, the program will reduce greenhouse gas emissions and energy costs, improve indoor air quality to create healthier learning environments and provide community access to green careers.

This is only the beginning. More green funding is flowing to the charter school sector. Both CSDC and RDF will expand their programs to other schools nationwide as they develop a replicable, high-impact, national model for energy efficiency funding and refine the all-in costs and benefits of energy improvements.

On a national level, the Greenhouse Gas Reduction Fund unlocks $27 billion in financing for nonprofits, schools, and small businesses interested in climate actions. “Green banks,” like RDF, are receiving more national funding enabling them to allocate resources to areas of need like charter schools. Additionally, charter schools can receive noncompetitive funds through the Inflation Reduction Act to directly pay for 30 percent of clean energy projects. States are also stepping up with their own programs, launching state and local initiatives for clean energy, climate education, and sustainability planning.

Charter schools once thought that a ‘green’ facility was too expensive. Now with new federal programs, many green initiatives may be financially feasible and save operating costs. However, they will require charter schools, their architects, engineers and developers, and the financial institutions to learn more about the ways these funds can be used. The National Alliance supports organizations that are hosting informational sessions to help charter schools surf an ever increasing green wave of federal funding.

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By Katie Piehl, Bloomwise Partners

About our Partners

Charter Schools Development Corporation (CSDC), a 501(c)(3) non-profit corporation and Community Development Financial Institution (CDFI), has been a trailblazer for over 25 years, championing school choice and providing educational facility solutions in underserved communities. CSDC has supported over 230 schools in 30 states plus the District of Columbia.

Raza Development Fund (RDF) is the largest national, Latino-focused nonprofit Community Development Financial Institution (CDFI). Driven by a mission to close wealth and opportunity gaps in Latino and other under-resourced communities, RDF provides responsible and attainable financial solutions to community-based organizations, including education facilities with a majority of education investments directed toward charter schools. RDF was founded as a support corporation to UnidosUS, the nation’s largest Hispanic civil rights and advocacy nonprofit, formerly known as the National Council of La Raza.

Katie Piehl is founder of Bloomwise Partners, an education and sustainability consulting firm dedicated to greening the education sector. Piehl supports the CSDC Charters RISE Program and is part of FRED – Facilities Real Estate Development – that advances systemic and scalable charter school facility related solutions, funding, and policy. For more information on Bloomwise Partners and/or FRED, reach out to Katie at katie@bloomwisepartners.com.

GreenLink Education helps schools and nonprofits realize their tremendous potential to address climate change. Greenlink’s mission is to bring proven sustainability solutions to scale in the education and nonprofit sectors.

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