Heartland Finance Hub, Cincinnati 2023 : simplebooklet.com

FROM TOM CROFT, MANAGING DIRECTORHEARTLAND CAPITAL STRATEGIESInnovative Workforce Financing with America Achieves & Social Finance Designing Climate Innovation for Community Impact with Elemental Excelerator & Nth CycleState Revolving Water Loan Fund Academy with Quantified Ventures On June 14, 2023, as part of the Milken Institute’s 10K Communities Initiative, and its“Midwest Regional Rally Up,” Heartland Capital Strategies (HCS) hosted a SustainableFinance Hub (Hub) “anchor event” in Cincinnati, Ohio. Our goal for the event was toconvene sustainable investors, labor, community leaders and business partners tofoster a collaborative approach to best position the Midwest-Upper Appalachianregion to compete for the historic clean infrastructure funds ushered in by the BidenAdministration and Congress. We were joined by 70 regional and nationalstakeholders. The 10K Initiative aims to foster connections and collaboration between public,private and community leaders to maximize the use of new federal funding sourcesand leverage local and regional outcomes. The two-day event included an advancedmanufacturing anchor event by the The Port of Greater Cincinnati DevelopmentAuthority, and a number of Boot Camps and Training Sessions for in-person andvirtual attendees including: 10K invites you to join the Midwest Regional Channel on the CommunityInfrastructure Center. The Hub was conceived as part of the Marshall Plan for Middle America (MP4MA),Reimagine Appalachia (RA), and Heartland itself. It has a strong focus on re-claiming,for the region, resources from the Bipartisan Infrastructure Law, (BIL), the InflationReduction Act (IRA) and CHIPS Act for the purpose of deploying unity-scale, jobs-generating infrastructure initiatives. The Biden Administration is making unprecedented investments in MidwestAppalachia and around the country. The Clean Energy/Infrastructure program wasdesigned to focus on communities and workers left behind, people impacted by thetransition to a cleaner economy. We’re going to see the best and brightest ambassadors of the Administration whoare making a difference, and hear from regional and national champions who havesupported that effort.3

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Then we’re taking a tour of some of the most exciting clean energy projects in theregion, proof that the Midwest and Appalachia can rebuild toward a sustainablefuture. We’ve been tracking these developments for three years, and it’s amazing tosee them materialize and near completion, bringing good union jobs and cleanpower for tens of thousands.We’re also having a conversation about how to front-load and fast-track resilient,affordable housing for rural and urban communities. A few miles south of here,Kentucky communities suffered major damage from horrific floods-exacerbated byclimate chaos —and are still struggling to recover. But here in Ohio, closer toColumbus, the Intel chips factory is being built, thanks to the Biden Team, andhousing is needed for this sudden growth of new projects. This and other parts ofour region need thousands of housing units.I’m personally excited about a panel on renewing our brownfields and former mine-lands, and how our friends across the Ohio River in West Virginia are re-tooling theskills of workers and reviving our energy infrastructure.Finally, I wanted to make some comments about our regional work, but also raisemacro challenges on the road ahead. The Upper Appalachian region is composed oflong-closed coal and steel mill towns, like the towns in my organization, the SteelValley Authority (SVA), based around Pittsburgh. We know too well the history ofboom-bust declines, resource depletion, and high levels of poverty, rural and urban.We also know the false jobs promises and a litany of failed training programs madeto dislocated workers over the decades.Three years ago, Mayor Bill Peduto, our former mayor, asked me to help with thelaunch by the Marshall Plan for Middle America (MP4MA), which brought togethernine mayors in a four-state region. We stood up an Appalachian Sustainable FinanceHub to marshal responsible investors, tools, and procurement solutions for a rangeof clean economy projects in the region.The manager for the project is the SVA’s Heartland Capital Strategies (HCS) program,a national network of responsible pension consultants, asset managers, unions, andpolicy leaders advising on or managing $1.5 trillion in assets. Heartland wasestablished in 1995 by the Steelworkers and AFL-CIO to reclaim labor’s capital—ourmoney—and to rebuild America.An aviator in responsible investing, our investment partners have saved or created100s of thousands of high-road jobs; built ⁄ million+ housing units; invested in $4-5billion in infrastructure; re-tooled and re-shored critical manufacturing.4

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A clean economy purchasing consortium(a) for towns, cities, and universities; A project knowledge portal, providing best practices, including good laborstandards; An investment clearinghouse to co-invest workers’ pension funds with federalclean energy programs.The Finance Hub proposes three components:1.2.3.Through three years of convenings, we’ve highlighted amazing projects throughoutthe region that hired local workers and put women and minority apprentices towork in high roads jobs.A shining example was former Mayor John Cranley’s Cincinnati Solar Farm built inHighland County, an Appalachian county, utilizing a PLA and IBEW labor. This model—our urban communities sharing projects with our rural neighbors - was at theheart of Mayor Peduto’s idea for the MP4MA. The cities are the drivers of a newclimate agenda but don’t always have the room. Why not share the development? For over a century, rural Appalachia was connected to our urban centers. Then, thefactories closed, the mines tapped out, and the connection died. Our cities have, overthe last decades, recovered to an extent. Our mountain and river towns never did.We cannot let our workers and their families, city or countryside, continue to wasteaway, move away, spend years on dead-end training program and jobs, and die off.We cannot continue to let our children leave town because there is no hope, noopportunity. Young people are our future; they want to be engaged, challenged. Ifour children leave, we have no future.This country has too much work to do; for one, leading the world in averting aclimate catastrophe. To do that, we will to bring our industries back home, retool ourclosed factories, repurpose our brownfields and former energy sites. We will not have an opportunity like this for a long time. You will not see another setof sustainable industrial policies, something I’ve spent my life fighting for, that are assmart and comprehensive as these. This is the time and this is the place.We’ve sent along a proposal to partner with the ARC on the Hub concept, and I’mglad to say that there’s an interest at the ARC. So, I’m asking all of you to join us.Reach out. Stay in touch. Thank you.5

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Ms. Skelton began by discussing the historic nature of the Biden’s Administrationinvestments in the region through stacked tax credits, loans, and otherincentives. There’s an elective pay feature for non-profits and other projects toimplement workforce opportunities. These new initiatives are contributing to amodern sustainable industrial policy. Ms. Skelton referred all participants to thefollowing website https://www.energy.gov/ for further information. KAREN SKELTON, SENIOR WHITE HOUSE POLICY ADVISOR, OFFICE OFCLEAN ENERGY, INNOVATION & IMPLEMENTATIONJigar expanded on how to unlock the transformative investments of theAdministration by taking advantage of the array of loans and stackableincentives. His team has worked to get everyone to the table, and togetherforging a shared vision needed to build our energy economy back better. Mr.Shah discussed how the DOE’s Loan Programs Office is energy sector agnosticand private sector led/government enabled. By deploying these loans and loanguarantees for clean energy, advanced transportation, and tribal energy projects,technology commercialization will happen here in Appalachia, thus creatinggood paying union jobs, robust apprenticeship programs and delivering benefitsto the hardest-hit communities. JIGAR SHAH, DIRECTOR OF DOE LOAN PROGRAM OFFICE (LPO)Ms. Garrison spoke about how ARC was created and its coverage area of serving13 states, 423 counties, 206,000 square miles, 26 million people and 74 localdevelopment districts. Currently has several programs including READYAppalachia, ARC’s new community-capacity building initiative, offering flexiblefunding to organizations in four key economic development pillars: nonprofits,community foundation, local governments, and local development districts withfree training to the Appalachians that work for them. Special emphasis will beplaced on serving Appalachia’s most underrepresented communities, includingeconomically distressed areas, counties targeted by the Interagency WorkingGroup on Energy Communities, and other marginalized communities. JENNIFER GARRISON, SENIOR POLICY ADVISOR TO ARC CO-CHAIR The event was kicked off with a robust presentation by Biden Administration "all-stars" about the unprecedented investments the Biden Team is making in MidwestAppalachia. SESSION ONE SPEAKERS7

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Reimagine Appalachia is a coalition of individuals andorganizations that work together to build the future inthe Ohio River Valley. Dana focused on the communityand labor aspects IRA and BIL. To help fill the CBArequirement of the IRA’s DOE projects, ReimagineAppalachia, a coalition of over 100 organizations and over100 elected officials, faith leaders and labor partners, hasestablished a Community Benefits’ Resource Bank. DANA KUHNLINE, CAMPAIGN DIRECTOR, REIMAGINE APPALACHIAThe CFE program at Rocky Mountain Institute works toaccelerate a transition to clean electricity around theworld. Jeremy discussed how the IRA, through tax creditsand new investments, is set to accelerate the transition toclean energy, so ensuring a fair transition is more urgentthan ever. Since the passage of IRA, domesticmanufacturing is surging, especially in the clean energysupply chain. DOE’s $250 billion EIR (EnergyInfrastructure Reinvestment) low-cost financing enablesmulti-step projects that drive long-term economicdevelopment in energy communities.JEREMY RICHARDSON, MANAGER IN THE CARBON-FREE ELECTRICITYPROGRAM, ROCKY MOUNTAIN INSTITUTE (RMI)Rewiring America is the leading electrification nonprofitdeveloping accessible data and tools for householdsand communities. Keisha highlighted a new consumeroutreach and education campaign to connectAmerican households with IRA rebates and taxincentives to go electric. Rewiring America has a GoElectric guide and an online calculator to help peopleunderstand how to use IRA benefits to go electric intheir homes. SESSION TWO SPEAKERSKEISHA AUSTIN, HEAD OF COMMUNITY, REWIRING AMERICA9

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LESSONS LEARNED FROMREGIONAL PROJECTSsessionTHREEWhether the business plans workedHelpful procurement, PLA, or CBA policiesUtilization of federal clean energy incentivesThe impact on jobs, clean energySharing of lessons for other cities and theregional rural towns, counties, and universitiesMany high-profile projects have been showcased bythe Finance Hub since 2020. This session discussed:Panelists from Session Three being introduced by Oliver KronerRon DeLyons and Vera FlequerWorkers from Sustainergy10

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Oliver outlined the climate planning goals of the City of Cincinnati: a 50%reduction of carbon emissions by 2030, 100% carbon neutral by 2050.Implementation will include 28 solar installations at city facilities, 1st Net-Zeropolice station, and a 100% Green Energy Community Choice Aggregation. The City is building the New Markets Solar project in Appalachia's HighlandCounty through an RFP that included 2 project labor agreements. Oliverenvisions the following outcomes from the 100 MW solar project being built inHighland County: 35 MW to serve the city’s municipal electricity load, and 65 MWto serve the Community Choice Aggregation load. This will result in cost savings,price stabilization, revenue for the city, jobs and clean energy for thousands.OLIVER KRONER, DIRECTOR, CITY OF CINCINNATI OFFICE OFENVIRONMENT AND SUSTAINABILITYCreekwood Energy is assisting their client (City of Cincinnati) in achieving its goalof transitioning to 100% clean and renewable energy through optimization ofexiting energy assets, fixed price solar and single-point process management.Ron described the in-progress New Market Solar Project, the largest municipalsolar project east of the Mississippi, spurred by the city’s procurement of 100 MW.The project will generate 160 construction jobs, including IBEW union jobs, andsave the city $3 million a year. New Market was a partnership with HecateEnergy.RON DELYONS, CEO, CREEKWOOD ENERGYSESSION THREE SPEAKERS AND OVERVIEWVERA FLEQUER, CEO, SUSTAINERGYSustainergy is a worker-owned insulation and solar company committed tosustainability and social justice. Vera highlighted many of the successes of thisunionized company, not only in retrofitting buildings and marketing uniquestrategies sustainable and scalable to improve energy efficiencies in GreaterCincinnati, but by creating a business that is humane and replicable. 11

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EDF assists utilities, commercial & industrial, and corporate purchases throughprocurement of renewable energy. Adam described the in-progress Fox SquirrelSolar Project (ground-mount solar photovoltaic) in Madison County, Ohio, apartnership with LiUNA. The project is planning to deliver 577 MW of cleanrenewable energy to the utility grid by the end of 2024, with a minimal impact onthe surrounding community.ADAM SOKOLOSKI, DIRECTOR OF REGULATORY/LEGISLATIVEAFFAIRS, EDF RENEWABLESSESSION THREE SPEAKERS AND OVERVIEWLECET brings together LIUNA and itscontractors to assist with addressing projectconcerns. Sara shared a video highlightingthe members who are working on thecurrent Fox Squirrel Solar Project with EDF.The video provided insight into howimpactful these solar projects can be inproviding career opportunities for Ohioans. SARA GUICE, CONSTRUCTIONMARKET REPRESENTATIVE, LECETOptimize provides solutions for distributed generation or microgrid projects. Lennoted how they identify the right mix of renewable energy technology blends,public-private capital blends and applied learning and workforce development tokickstart resilient microgrids in the Appalachian region. Optimize has developed a$149 million portfolio of city, university, and business micro-grids. LEN JORNLIN, CEO, OPTIMIZE RENEWABLESThe ecosystem is in the early stages ofdeploying training, upskilling, andworkforce development initiativesacross the region through real projectsfor applied learning linked to integratedturnkey solutions for renewables, water,wood biofuels and housing.Sara Guice and Len Jornlin12

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REBUILDING AFFORDABLEHOUSING & INFRASTRUCTURE FORMIDWEST-APPALACHIA-KENTUCKY'S FLOOD LANDSsessionFOURThe tools available to improve access tohousing and ensure its affordabilityFinancial resources needed to bring housingprojects to scale in the region includingpublic leveraging private capitalIRA incentives and the role they play Resiliency/decarbonizationLocal communities training and growingthe workforce needed to meet the housingand infrastructure needs This session addressed:Thalia Lankin served as moderatorfor session 4Roger Krulak and Reese May Eric Dixon13

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The AFL-CIO ITC connects labor retirement funds with labor-friendlyinvestment vehicles. Thalia began the panel by focusing on the importance ofreinvesting labor’s capital in growing the clean economy and rebuilding cities. As an HCS Governing Board member, she described Heartland’s unique “table”of pension and capital stewards; investment consultants; asset managers; labor,business, and elected leaders; legal, academic, and policy advocates. She saidHCS is working in a united front to rebuild our cities, renew and innovate ourindustrial commons, grow the clean economy, and ensure a voice for workersand stakeholders. THALIA LANKIN, CHIEF STRATEGY OFFICER, AFL-CIO INVESTMENT TRUSTORVI is a think tank providing policy research and practice tools to advancesolutions in Appalachia. Eric addressed the scope of the housing crisis inKentucky and the gap between funds to rebuild flood damaged homes and the$500 million to $1 billion estimates of the cost to rebuild. He pointed out theopportunity for solar on former mine lands for new multi-home developmentsand training a local skilled workforce in building trades. Appalachia alreadyneeds more housing, and the need will grow with the influx of climate migrantsand continued flood and fire damage. ERIC DIXON, SENIOR RESEARCHER, OHIO RIVER VALLEY INSTITUTESESSION FOUR SPEAKERS AND OVERVIEW14

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SBP helps at-risk communities with business and innovation strategies to createsocial impact. Reese closed the panel discussing the Recovery Acceleration Fund(RAF), that aims to rebuild housing for the most vulnerable HUD-qualifiedhomeowners. Reese described how SRP got its start in the Gulf after Katrina andhas established outposts all around the world, helping communities recover fromdisasters. If implemented, RAF could bring much needed relief quicker toKentucky and other affected areas years faster than traditional recoveryprograms, thus minimizing the real human toll on those affected. REESE MAY, CHIEF STRATEGY AND INNOVATION OFFICER, SBP USASESSION FOUR SPEAKERS AND OVERVIEWFull Stack Module can build high-rises faster and more cost-effectively thantraditional construction. Roger focused on the expansion of cost-effective union-friendly, green modular housing to alleviate the current and future housing crisisfaced in Appalachia. With technology, proprietary IP and approved manufacturerstatus. FSM is focused on the $63 billion market that consists of multi-family,lodging, student housing and affordable housing.ROGER KRULAK, CEO, FULL STACK MODULAR15

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RE-ENERGIZING WORKERSAND COMMUNITIESsessionFIVEThe region has massive amounts ofabandoned brownfields, closed mines,and power plants with thousands ofdislocated workers who want a useful,meaningful career. This panel discussed projects meant tomove the region toward net zero; putdislocated workers and young peopleback to work in family-sustaining jobs;and clean up abandoned brownfields.Grant Ervin kicks off session 5Dan Conant discusses Solar HollerBo Wholey, Grant Ervin, and Brady Gutta16

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Brady described the current projects of the ACT (Appalachian ClimateTechnology) NOW Coalition funded by a $62.8 million+ Build Back Better (BBB)competitive grant from the US EDA, coupled with $26 million in cost share . Thegoals of this coalition are to support the transition from coal to solar byimplementing sustainable reuse projects on abandoned mine sites, rejuvenatingbrownfields sites with new facilities equipped to train a diversified, skilledworkforce, provide advanced manufacturing capacity, and developentrepreneurial programs to support employment in environmentalsustainability. The current projects include Black Diamond (below), a 5-acre sitethat will include space for workforce training and expansion of transportationand logistics capacities for partners like Solar Holler. S & B USA has over $2.5B of mega projects in the US since 2016, +450 MWrenewable energy assets connected to grid and under construction in their 4lines of business EV charging, Energy, Construction and Concessions. Grantnoted the Appalachian region has more than its share of brownfields,abandoned mines, closed powerplants and dislocated workers. He challengedthe panelists to discuss ways to move the Appalachian region to net zero,return dislocated workers to family-sustaining jobs and clean up brownfields. GRANT ERVIN, DIRECTOR ESG AND INNOVATIONS, S&B USAJ BRADY GUTTA, DIRECTOR OF THE CENTERFOR SUSTAINABLE MINE LANDS (WVU)SESSION FIVE SPEAKERS AND OVERVIEW17

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Solar Holler is working to create a low-income lease for Appalachians and, inorder to cut out Wall Street, return project ownership to Appalachians throughthe Solar Holler Power Plant Company. Dan explained plans to install 9,000 MWannually by 2032. He went on to describe the successes of his company, afounding partner in the ACT NOW Coalition. In 2016, SH launched the first solarfinancing programs, when no one else thought twice about the region, and in2020, worked with IBEW to unionize the installation crews. Now with 109 fulltime employees, they are now installing an average of 700 projects.DAN CONANT, CEO, SOLAR HOLLERBo closed the session by describing thefinancing and construction of a 485 MWcombined cycle gas turbine power plant,leading to several long-term, fixed price powersales agreements, vertically integrating thepower plant’s natural gas supply, andestablishing a plan to transition the powerplant’s fuel source to hydrogen, which willinitially reduce and ultimately eliminate carbonemissions. LR is partly financed by GCMGrosvenor, a Heartland Network partner.ROBERT "BO" WHOLEY, PRESIDENT,LONG RIDGE ENERGY & POWERSESSION FIVE SPEAKERS AND OVERVIEW18

Heartland Finance Hub, Cincinnati 2023

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