Author: Paul Ulukpo

Helping to ensure everyone has access to electric vehicles to meet critical needs

by Rep. Nanette BarraÁn (D-CALIF.) and Los Angeles Cleantech Incubator CEO Matt Petersen, as published in THE HILL 06/09/22

Americans are hurt by high prices at the pump and the cost of energy continues to rise and contributes to inflation, while the global addiction to fossil fuels also helps to fund Russian President Vladimir Putin’s invasion of Ukraine. Eliminating our dependence on oil and gas, while reducing air and climate pollution, is critical not just for the environment, but for national and global security.  

In the United States, we can invest in electric vehicles (EVs) and create good paying green jobs to be a global leader in the transition away from fossil fuels. That’s why we support President Biden’s commitment to prioritizing investments and clean vehicle standards to accelerate deployment of EVs and charging infrastructure.  

EVs are significantly cheaper to maintain and power compared to filling up cars with gasoline, and they produce zero emissions. However, too many low-income Americans who need use of a car–for needs that often can’t be met by many public transit systems –are unable to access an EV. These same communities, predominantly communities of color, face some of our nation’s worst air quality as cars and trucks pollute neighborhoods divided by freeways.  

To invest in EV infrastructure in disadvantaged communities that experience disproportionate air pollution, and to help ensure everyone can access zero-emission cars, we have worked together to develop the EVs For All Act, introduced in February in the United States House of Representatives. This bill will establish a $50 million annual grant program at the U.S. Department of Energy (DOE) to support EV car sharing and charging for public housing residents. The program would provide up to $1 million to eligible housing authorities across the United States, enabling investments in EV charging station infrastructure at or near public-housing, while supporting community education, outreach, and funding to make EVs accessible for residents. 

The investments in the Infrastructure Investment and Jobs Act (IIJA) of 2021 provide $7.5 billion for EV charging and additional funds for EV buses. However, we also need to address the needs of low-income communities where charging stations do not exist, and many families need occasional access to a car. Providing access to EVs and installing charging stations in low-income communities will also help reduce the number of polluting gas-powered cars on our roads and highways. EVs for All can help meet President Biden’s pledge to deliver at least 40 percent of the overall benefits from federal investments in climate and clean energy to disadvantaged communities.  

We know this program is needed and can work. Why? Because the EVs for All bill is based on the Los Angeles Cleantech Incubator (LACI)’s innovative and successful EV car share pilot at the Rancho San Pedro public housing complex near the Port of Los Angeles. LACI, in partnership with the Housing Authority of the City of Los Angeles, launched the pilot program to provide a clean mobility option for the more than 1,400 residents of the public-housing complex. Residents who subscribe to the car-sharing service are mostly transit-dependent. Providing access to subsidized shareable EVs makes it easier for these residents to get to job interviews, take family members to medical appointments, take trips to the store for groceries and visit family in communities throughout the LA Metro area. EV car sharing provides essential mobility while relieving financial stress for low-income residents.  

Andrea Marpillero-Colomina, sustainable communities program director at GreenLatinos warned in a recent The Hill op-ed “charging deserts disproportionately impact majority non-white and lower income neighborhoods,” creating barriers to EV acceptance in wide swaths of urban America. This legislation will bring greater equity to the distribution of EV charging infrastructure.  

Creating economic opportunity and accelerating the zero-emissions future requires that every family, regardless of income, is included in the EV transformation. The EVs for All Act would provide resources for low-income community members in public housing across the country who are often left without access to climate and clean air solutions.  

Congress and the Biden Administration need to increase investments in EV charging, electric school and transit buses, and public transit. Prioritizing initiatives like EVs for All will help ensure everyone has access to EVs to meet critical needs while reducing pollution, whether or not they can afford to own a car. Environmental justice is about fairness and is an essential ingredient to sustainable economic progress and the goals we all share: Cleaning the air, fighting the climate crisis, and providing opportunities for communities to be self-sufficient. 

Nanette Barragán represents the 44th District of California. Matt Petersen is president and CEO of Los Angeles Cleantech Incubator. 

Los Angeles Cleantech Incubator Launches First In Nation Cleantech Loan Fund To Accelerate Equitable Climate Action

New LACI Fund to Provide an Affordable Alternative to Venture Capital For Startups; By Not Requiring Personal Collateral or Credit Scores, LACI Aims to Help Underrepresented Founders in Particular Overcome Historical, Institutional Barriers to Access to Capital

The Los Angeles Cleantech Incubator (LACI) announced the launch of their nationwide LACI Cleantech Debt Fund, a first-of-its-kind green loan program to scale early stage cleantech startups and accelerate equitable climate action. 

The $6 million fund will provide loans of $25,000 to $250,000 to an estimated 100 early-stage startups over five years, providing a non-dilutive alternative to venture capital for companies that need financing to support their first customer orders or working capital to scale their businesses. LACI endeavors to help underrepresented founders–in particular female, Black, and Brown founders–overcome some of the institutional and historical barriers they face in accessing capital to grow their business. Unlike most traditional bank loans, the LACI Cleantech Debt Fund will not require founders’ personal collateral or their personal credit scores in underwriting.

LACI created the Cleantech Debt Fund in partnership with anchor investors Sobrato Philanthropies and Homecoming Capital, who are aligned in their missions to support more entrepreneurial innovation to address climate challenges. Additionally, the Wells Fargo Foundation is providing a grant to cover initial operating costs and loan loss reserves.

“To help cleantech startups move at the speed and scale needed to meet the climate crisis, we created the LACI Cleantech Debt Fund as a new tool to give early stage cleantech founders a timely, affordable alternative to expensive venture capital and slow moving bank debt,” said LACI CEO Matt Petersen. “The LACI Cleantech Debt Fund will also help reduce barriers to capital for underserved founders from historically underrepresented communities–too many founders cannot access traditional bank financing as they lack adequate personal assets, or the personal networks needed to secure early stage investment.”

“We need lots of approaches to innovation to address our current climate challenges, and we’re excited to partner with LACI to fill a capital gap that will enable more companies, from more regions and founder backgrounds, to access investment for their growing businesses.” said Victoria Fram of Sobrato Philanthropies and Pat Arnold of Homecoming Capital. “LACI along with Greentown Labs, Evergreen Climate Innovations, and New Energy Nexus are well-positioned to source a diversified pipeline of entrepreneurial solutions, and we’re glad to partner with them as co-investors.”

“To scale a company like ours and keep creating jobs, you need funding that isn’t easily acquired by minority owned businesses,” said Josh Aviv, CEO and Co-Founder of SparkCharge, a portfolio company of both LACI and Greentown Labs, which received an initial loan from the LACI pilot debt fund. “LACI’s Cleantech Debt Fund helps level the playing field, reducing the financial risks and truly enabling businesses to thrive. They are incredible partners who understand the challenges startups face.”

“We are excited to have the Wells Fargo grant play a catalytic role in attracting other sources of capital to the new LACI Cleantech Debt Fund,” said Ramsay Huntley, Climate and Innovation Strategy Lead at Wells Fargo. “So many businesses will benefit from LACI’s commitment to climate equity and their ability to identify companies ready for greater investment. This fund represents a shared belief that entrepreneurs motivated by climate action have the power to make an impact even early in their business journey.”

“The scaled-up LACI Cleantech Debt Fund is paramount to giving our founders choices across the full capital stack, with debt on the one hand via this innovative fund and equity via the LACI Impact Fund on the other,” said LACI SVP Alex Mitchell.

LACI is also partnering with a limited network of leading incubation organizations whose portfolio companies will be eligible to qualify for loans from the Cleantech Debt Fund, including Greentown Labs (Boston, MA & Houston, TX), Evergreen Climate Innovations (Chicago, IL), and New Energy Nexus (Oakland, CA & New York, NY). LACI selected Impact investment firm Mission Driven Finance of San Diego, California to assist with loan origination and servicing, as well as supporting underwriting. Mastercard’s Racial Justice Pro Bono Program–which is a part of Mastercard’s In Solidarity initiative to drive racial equity and create equal opportunities for all–consulted on the Fund model.

After LACI conducted US DOE-funded research validating the need for early stage lending for cleantech startups, the organization piloted the debt fund concept–capitalized by a Wells Fargo Foundation grant–by underwriting loans totalling more than $300,000 to nine startups. The pilot debt fund has had zero defaults and no late payments, and included loans to SparkCharge, Envoy, and others (see below for examples). LACI first shared their DOE-funded research and commitment to creating a national cleantech debt fund at the Clinton Foundation economic conference in November 2019.

The LACI Cleantech Debt Fund joins the LACI Impact Fund I and non-dilutive pilot funds as capital for which LACI incubated startups are eligible to apply. After nine quarters of investing, the $5 million LACI Impact Fund I is nearly 100% deployed and has made equity investments in 15 LACI startups. The LACI Impact Fund empowers LACI founders to grow their early-stage cleantech companies, including ChargerHelp! CEO Kameale Terry which has gone on to build a nationwide network responsible for maintaining 30,000 EV charging stations while ensuring their technicians earn a minimum of $30 per hour with a guaranteed 40-hour work week. LACI is now out to market in raising LACI Impact Fund II.

Sample LACI Pilot Cleantech Debt Fund Recipients

Initial LACI’s pilot debt fund loans to startups include:

SparkCharge:  SparkCharge received a $40,000 low-interest loan for their on-demand mobile electric vehicle charging solutions. The company leveraged the funds to help scale operations, hire 40 employees, including a graduate of LACI’s Green Jobs Workforce Training Program, and develop the Roadie Portable EV Charging System. The loan from LACI’s Debt Fund also enabled SparkCharge to raise nearly $24 million in additional capital through equity and debt funding. On March 1, 2022, after the recent launch of SparkCharge’s Currently app, Kia America and Currently announced a partnership that provides EV owners with on-demand concierge service, allowing them to charge their EVs when and where they want.

Envoy: Envoy, a provider of shared, on-demand, community-based EV’s, also leveraged the LACI Debt Fund to grow their business. LACI selected Envoy to operate a pilot community car-share program for residents of the Housing Authority of City of Los Angeles’ (HACLA) Rancho San Pedro public housing complex. The program not only delivered the benefits of electric vehicles and mobility to this historically underserved community, LACI used the pilot as a model for the EVs For All Act introduced by Congresswoman Nanette Díaz Barragán (CA-44). Barragán worked closely with LACI to develop the Act. If passed, the bill will establish a $50 million annual grant program at the U.S. Department of Energy (DOE) to support EV car sharing and charging stations, community education and outreach, and other services for public housing residents to increase access to mobility solutions in transportation deserts.

About LACI

The Los Angeles Cleantech Incubator (LACI) is creating an inclusive green economy by unlocking innovation through helping scale cleantech startups, transforming markets through catalytic partnerships like the Transportation Electrification Partnership, and enhancing communities through green workforce training and pilots. Founded as an economic development initiative by the City of Los Angeles and its Department of Water & Power (LADWP) in 2011, LACI is recognized as one of the top 10 innovative business incubators in the world by UBI. To date, LACI has supported 315 startup companies that have secured more than $695 million in funding, generated more than $308 million in revenue, and helped to create an estimated 2,480 jobs with a long-term projected economic impact of more than $555 million.

About Sobrato Philanthropies

Sobrato Philanthropies’ investment in LACI’s Cleantech Debt Fund was committed by John A. Sobrato. Sobrato Philanthropies’ mission is to partner with communities to meet immediate needs, address systemic barriers, and pursue social justice to build a more equitable and sustainable world. Guided by the business philosophy and personal values of the Sobrato family, three generations engage in grantmaking, advocacy, impact investing, and collaborative efforts to create impact locally and around the world.

About Homecoming Capital

Homecoming Capital is a climate-focused investment firm that invests in businesses that decarbonize the economy as they grow. Homecoming’s investments span North America and Europe and support businesses driving decarbonization of the energy, transportation, industrial, and agricultural sectors. For more information, please visit www.homecomingcapital.com.

CONGRESSWOMAN BARRAGAN INTRODUCES FIRST-OF-ITS KIND BILL TO ESTABLISH ELECTRIC-VEHICLE CAR SHARING PROGRAM FOR PUBLIC HOUSING

WASHINGTON, D.C. Today Congresswoman Nanette Díaz Barragán (CA-44) introduced the EVs For All Act to establish an innovative grant program at the U.S. Department of Energy (DOE) to support electric vehicle car sharing for public housing residents. The program would help public housing authorities and local governments invest in electric vehicles (EV), EV charging stations, community education and outreach, and other services and incentives to provide access to EVs for public housing residents.

“The success of our clean energy future requires that every resident, regardless of income, is included in the electric vehicle transformation,” Congresswoman Barragán said. “The EVs for All Act would provide resources for low-income residents in my district and around the country that are often left out of climate solutions. Congress must lead the way in ensuring that everyone has access to electric vehicles and clean air, including people who can’t afford to own a car.”

The bill would authorize up to $50 million in annual appropriations from 2022-2031 to launch a grant program with DoE which would implement the program in coordination with Housing and Urban Development (HUD) and the Department of Transportation (DOT). The program would provide up to $1 million in funding to eligible entities to support EV car sharing services dedicated for residents who live in public housing projects. Research has shown that public housing residents face significant barriers in accessing reliable and affordable transportation of any kind – and especially zero-emission transportation. Additionally, too many communities of color face disproportionate air pollution yet completely lack access to EV charging infrastructure or zero emission vehicles even though operating EVs is much less expensive than operating gasoline powered cars.

Barragán’s office worked closely with the
Los Angeles Cleantech Incubator (LACI) to develop the legislation. LACI is accelerating transportation electrification in the Los Angeles region through pilots and policy, as well as incubating startups and training individuals to join the green workforce. Among other community shared EV mobility pilots, LACI launched EV car sharing programs in public housing developments in Los Angeles, including one dedicated only to housing authority residents at Rancho San Pedro, in partnership with the Housing Authority of the City of Los Angeles (HACLA).

“LACI’s mobility pilots have demonstrated that EV car sharing programs can improve the economic mobility and quality of life of residents whose communities face disproportionate air pollution and climate impacts,” said Matt Petersen, LACI’s president and CEO. “We applaud Congresswoman Barragán leadership in helping to scale this pilot to increase equitable access to transportation to shared EVs and charging in cities across the nation.”

“Going green shouldn’t be reserved for only a specific socioeconomic status,” said HACLA President and CEO Doug Guthrie. “This electric vehicle share initiative provides a benefit to the community and environment as a whole. The Housing Authority of the City of Los Angeles is proud to partner with LACI on this forward-thinking and innovative pilot program that brings both opportunity and access to our residents in a community that is often overlooked and underserved,” Guthrie added.

The bill is aligned with the Biden-Harris administration’s
Justice40 Initiative, a commitment to invest 40% of the federal government’s investments in climate and clean energy in disadvantaged communities.

Barragn was joined by 23 original cosponsors of the EVs for All Act, including
Congressmembers: Adam Smith (Wash.), Yvette Clarke (N.Y.), Adriano Espaillat (N.Y.), Doris Matsui (Calif.), Andr  Carson (Ind.), Dina Titus (Nev.), Pramila Jayapal (Wash.), Ra l Grijalva (Ariz.), Sheila Jackson Lee (Texas), Donald M. Payne Jr. (N.J.), Ruben Gallego (Ariz.), Derek Kilmer (Wash.), Ted Lieu (Calif.), Marilyn Strickland (Wash.), Jimmy Gomez (Calif.), Mike Levin (Calif.), Chellie Pingree (Maine), Jim Costa (Calif.), Bonnie Watson Coleman (N.J.), Tim Ryan (Ohio), Jared Huffman (Calif.), Rick Larsen (Wash.), and Alan Lowenthal (Calif.).

A PDF of the bill is attached.

The EVs for All Act has significant support from environmental justice, clean tech, clean air, and environmental organizations. 

Groups in support:

EVs for All Supporters as of February 4, 2022

Acterra: Action for a Healthy Planet
AMPLY Power

Breathe California of the Bay Area, Golden Gate, and Central Coast

Breathe California Sacramento Region

Breathe Southern California

Center for Environmental Health

Center for Sustainable Energy

Citizens Climate Lobby – Long Beach/South Bay

Clean Fuels Michigan

Cleantech San Diego

The Climate Center

Climate + Energy Project (Kansas)

The Climate Reality Project: Chicago Metro Chapter

The Climate Reality Project: Los Angeles Chapter

The Climate Reality Project: San Fernando Valley Chapter

Climate Resolve

Coalition for a Safe Environment

Communities for a Better Environment

Corporate Ethics International

Councilmember Paul Koretz

Defend Our Future

East Bay Community Energy (EBCE)

Ecology Center (Michigan)

Edison International

Electrification Coalition

Elemental Excelerator

The Emphysema Foundation of America

Environmental Defense Fund

Environmental Entrepreneurs (E2)

Environment America

EV Connect

EVHybridNoire

Envoy Technologies

Evergreen Climate Innovations

Forth

Fresh Energy

Generation 180

Greater Washington Region Clean Cities Coalition

GreenLatinos

The Greenlining Institute

Greenlots

Grid Alternatives Greater Los Angeles

LABC

Launch Alaska

Local Government Commission

Los Angeles Community College District

Los Angeles Cleantech Incubator (LACI)

Los Angeles County Economic Development Corporation (LAEDC)

New Jersey Clean Cities Coalition

NYU Urban Future Lab

Pacoima Beautiful

Paired Power, Inc.

Plug In America

Prairie Rivers Network

Project Green Home

Prospect Silicon Valley

ReJoule, Inc.

Respiratory Health Association

Sacramento Metropolitan Air Quality District

San Fernando Valley Climate Reality

Shared-Use Mobility Center

Sierra Club

South Coast Air Quality Management District

South Los Angeles Transit Empowerment Zone (SLATE-Z)

Southern Alliance for Clean Energy

Southwest Energy Efficiency Project

Transportation Electrification Partnership

U.S. Green Building Council – Los Angeles (USGBC-LA)

Valley CAN (Clean Air Now)

Valley Vision

Verdical Group

Vertue Lab

Vote Solar

Watts Clean Air & Energy Committee

Statement from Transportation Electrification Partnership on Governor Newsom’s Proposed 2022-2023 Budget

LOS ANGELES, CA “On behalf of the Transportation Electrification Partnership (TEP), I applaud and thank Governor Newsom for including $6.1 billion for zero-emission vehicles and infrastructure investments in his budget proposal, with a focus on providing greater access to and benefits from the transition to zero-emission vehicles to low-income communities that are disproportionately burdened by pollution. These investments are critical to achieving TEP’s bold 2028 targets for the LA region, and statewide goals for 2035 and beyond. 

We are pleased to see proposed funding for zero-emission vehicle purchases by low-income consumers, expansion of charging infrastructure in low-income neighborhoods, zero-emission mobility community pilots, electric transit and school bus purchases, zero-emission heavy-duty trucks and infrastructure, port electrification, as well as funding for active transportation projects such as bicycle and pedestrian safety programs, among others.

As the budget process progresses, LACI and TEP look forward to working with the Newsom Administration and Legislature to support these proposed investments and to develop a pathway to increase the funding for accelerating the electrification of California’s goods movement sector. 

Thanks to Governor Newsom’s leadership, California will fund investments to purchase 1,000 zero emission trucks along with supporting infrastructure. However, in order to transition the tens of thousands of diesel trucks serving California’s ports, we encourage the Governor and Legislature to dedicate a total of $3.35 billion in the 2022 budget towards the state’s transition to zero-emission drayage trucks and charging infrastructure, including $100 million zero-emission early action pilot projects in key transportation freight corridors like the I-710 freeway.

We believe the time is now for the State of California to fully embrace its unique role in making bold “market maker” investments that will create good jobs, advance equity, and result in deep reductions in air and climate pollution. We look forward to working with the Administration and Legislature to further develop the state budget to achieve these goals.


Matt Petersen
President & CEO, Los Angeles Cleantech Incubator
Chair, Transportation Electrification Partnership

 

ABOUT TEP
The Transportation Electrification Partnership (TEP) is an unprecedented regional public-private collaboration to accelerate deep reductions in climate and air pollution by the time of the 2028 Olympic and Paralympic Games by pursuing bold targets, pilots, initiatives, and policies that are equity-driven, create quality jobs, and grow the economy.

Current members include:
Leadership Group: Mayor Garcetti, CARB, County of Los Angeles, LADWP, LA Metro, Southern California Edison, LACI

Advisory Group: Audi of America, BMW Group, Nissan North America, PCS Energy, BYD Motors, Normal Now sponsored by Electrify America, Greenlots, Itron, Proterra, AMPLY Power, Burbank Water & Power, Clean Power Alliance, Culver City, East Bay Community Energy, Glendale Water & Power, Inglewood, International Brotherhood of Electrical Workers Local Union 11 / National Electrical Contractors Association Los Angeles County, Metrolink, Pasadena Water & Power, Santa Monica, Southern California Public Power Authority, Tesla, Waymo


ABOUT LACI
Los Angeles Cleantech Incubator (LACI) is creating an inclusive green economy for the people of Los Angeles by: unlocking innovation by working with startups to accelerate the commercialization of clean technologies; transforming markets through partnerships with policymakers, innovators, and market leaders in transportation, energy and sustainable cities; and enhancing communities through workforce development, pilots, and other programs. Founded as an economic development initiative by the City of Los Angeles and Los Angeles Department of Water & Power (LADWP), LACI is recognized as one of the most innovative business incubators in the world by UBI. As of Q2, 2021, LACI has helped 281 portfolio companies raise $636 million in funding and create over 2,300 jobs in the Los Angeles region, with a projected 5-year economic impact on the Los Angeles region of more than $520 million. Learn more at laci.org

LACI CEO Comments On COP26 UN Climate Talks and Passage of the Bipartisan Infrastructure Package

LACI CEO COMMENTS ON COP26 UN CLIMATE TALKS, BIPARTISAN INFRASTRUCTURE PACKAGE, AND  INFRASTRUCTURE INVESTMENT AND JOBS ACT (IIJA)

Los Angeles, November 12, 2021 – Upon return from the UN Climate Change Conference (COP26), Transportation Electrification Partnership (TEP) Chair and Los Angeles Cleantech Incubator (LACI) CEO Matt Petersen released the following statement in response to COP26 negotiations and President Biden’s  Infrastructure Investment and Jobs Act (IIJA) to be signed Monday: 

“Having just returned from COP26, it is obvious that the outcomes in the negotiating rooms have not yet matched the urgency demanded by the climate crisis. However, there have been many important outcomes at COP 26 that are worth celebrating, including: the US-China pledge yesterday to commit to hold global temperatures increase to 1.5 degrees C, a joint pledge to end deforestation by 2030 and achieve carbon-free electricity in the US by 2035; the commitment by an alliance of dozens of nations, cities and states––including Los Angeles and California––and companies to phase out internal combustion engines; the $130 trillion Global Finance Pledge; and the Global Methane Pledge led by the US and the EU.

Certainly the energy on the streets of Glasgow was full of optimism—as I joined an estimated 25,000 young and old alike marching for bold climate action, I felt a rise of hope and a sense of urgency. Inside the official climate talks I spoke at the official US Pavilion and joined the Deputy Secretary of Energy Dave Turk and NREL officials to call for a $1 billion cleantech city innovation fund while pushing for commitments to transportation electrification to improve mobility for disadvantaged communities and reducing air and climate pollution. LACI’s commitment is represented by our unique model and creation of our $50 million in climate innovation funds.

Here in the US on Monday, the President will sign the Infrastructure Investment and Jobs Act (IIJA), which provides important funding including: $2.5B for zero-emission school buses, $1.5B for zero-emissions transit buses, $2.25B for port infrastructure—key for the LA region given 40% of the nation’s goods come through our two ports making goods movement the largest single source of air pollution in our region, $6.1B for battery manufacturing, and $7.5B for public EV charging. These investments, passed by Congress, represent an important down payment in our climate future with an infrastructure package that includes a portion of the $150 billion stimulus transportation electrification proposal that LACI and our 100 plus member coalition of automakers, business organizations and cleantech incubators from 18 states originally put forward in April 2020.  

Yet we can and must do more. We have an opportunity and an obligation to accelerate our transition to zero-emission cars, trucks, and buses, today––especially for low-income communities and communities of color who are disproportionately impacted by transportation pollution. On behalf of our coalition, I urge Congress to quickly adopt the Build it Back Better Act to ensure that our nation makes the additional investments needed to reduce emissions, create green jobs, and make the U.S. the leader in the move to equitable zero-emissions mobility, goods movement solutions, and public transit.”

As LACI identified in the December 2019 “Cleantech Cities” report, cities around the globe can create a $5 trillion market and reduce greenhouse gas emissions by 35% by removing barriers to funding for startups. Based on the strategies identified in the report, LACI’s Transportation Electrification Partnership partnered with the City of Santa Monica to invite corporate and startup innovations to work together to create the US’ first Zero Emissions Delivery Zone pilot in Santa Monica. During COP26, Petersen called for a $1 billion cleantech cities pilot fund to support similar initiatives across the globe, alongside Actor Brian Cox, Phoenix Mayor Kate Gallego, Caroline Choi of Southern California Edison, Spencer Reeder of Audi, and former California Air Resources Board Chair Mary Nichols. LACI’s announcement on the call to action can be found here.

Los Angeles Cleantech Incubator Launches First In Nation Cleantech Loan Fund To Accelerate Equitable Climate Action

New LACI Fund to Provide an Affordable Alternative to Venture Capital For Startups; By Not Requiring Personal Collateral or Credit Scores, LACI Aims to Help Underrepresented Founders in Particular Overcome Historical, Institutional Barriers to Access to Capital

The Los Angeles Cleantech Incubator (LACI) announced the launch of their nationwide LACI Cleantech Debt Fund, a first-of-its-kind green loan program to scale early stage cleantech startups and accelerate equitable climate action. 

The $6 million fund will provide loans of $25,000 to $250,000 to an estimated 100 early-stage startups over five years, providing a non-dilutive alternative to venture capital for companies that need financing to support their first customer orders or working capital to scale their businesses. LACI endeavors to help underrepresented founders–in particular female, Black, and Brown founders–overcome some of the institutional and historical barriers they face in accessing capital to grow their business. Unlike most traditional bank loans, the LACI Cleantech Debt Fund will not require founders’ personal collateral or their personal credit scores in underwriting.

LACI created the Cleantech Debt Fund in partnership with anchor investors Sobrato Philanthropies and Homecoming Capital, who are aligned in their missions to support more entrepreneurial innovation to address climate challenges. Additionally, the Wells Fargo Foundation is providing a grant to cover initial operating costs and loan loss reserves.

“To help cleantech startups move at the speed and scale needed to meet the climate crisis, we created the LACI Cleantech Debt Fund as a new tool to give early stage cleantech founders a timely, affordable alternative to expensive venture capital and slow moving bank debt,” said LACI CEO Matt Petersen. “The LACI Cleantech Debt Fund will also help reduce barriers to capital for underserved founders from historically underrepresented communities–too many founders cannot access traditional bank financing as they lack adequate personal assets, or the personal networks needed to secure early stage investment.”

“We need lots of approaches to innovation to address our current climate challenges, and we’re excited to partner with LACI to fill a capital gap that will enable more companies, from more regions and founder backgrounds, to access investment for their growing businesses.” said Victoria Fram of Sobrato Philanthropies and Pat Arnold of Homecoming Capital. “LACI along with Greentown Labs, Evergreen Climate Innovations, and New Energy Nexus are well-positioned to source a diversified pipeline of entrepreneurial solutions, and we’re glad to partner with them as co-investors.”

“To scale a company like ours and keep creating jobs, you need funding that isn’t easily acquired by minority owned businesses,” said Josh Aviv, CEO and Co-Founder of SparkCharge, a portfolio company of both LACI and Greentown Labs, which received an initial loan from the LACI pilot debt fund. “LACI’s Cleantech Debt Fund helps level the playing field, reducing the financial risks and truly enabling businesses to thrive. They are incredible partners who understand the challenges startups face.”

“We are excited to have the Wells Fargo grant play a catalytic role in attracting other sources of capital to the new LACI Cleantech Debt Fund,” said Ramsay Huntley, Climate and Innovation Strategy Lead at Wells Fargo. “So many businesses will benefit from LACI’s commitment to climate equity and their ability to identify companies ready for greater investment. This fund represents a shared belief that entrepreneurs motivated by climate action have the power to make an impact even early in their business journey.”

“The scaled-up LACI Cleantech Debt Fund is paramount to giving our founders choices across the full capital stack, with debt on the one hand via this innovative fund and equity via the LACI Impact Fund on the other,” said LACI SVP Alex Mitchell.

LACI is also partnering with a limited network of leading incubation organizations whose portfolio companies will be eligible to qualify for loans from the Cleantech Debt Fund, including Greentown Labs (Boston, MA & Houston, TX), Evergreen Climate Innovations (Chicago, IL), and New Energy Nexus (Oakland, CA & New York, NY). LACI selected Impact investment firm Mission Driven Finance of San Diego, California to assist with loan origination and servicing, as well as supporting underwriting. Mastercard’s Racial Justice Pro Bono Program–which is a part of Mastercard’s In Solidarity initiative to drive racial equity and create equal opportunities for all–consulted on the Fund model.

After LACI conducted US DOE-funded research validating the need for early stage lending for cleantech startups, the organization piloted the debt fund concept–capitalized by a Wells Fargo Foundation grant–by underwriting loans totalling more than $300,000 to nine startups. The pilot debt fund has had zero defaults and no late payments, and included loans to SparkCharge, Envoy, and others (see below for examples). LACI first shared their DOE-funded research and commitment to creating a national cleantech debt fund at the Clinton Foundation economic conference in November 2019.

The LACI Cleantech Debt Fund joins the LACI Impact Fund I and non-dilutive pilot funds as capital for which LACI incubated startups are eligible to apply. After nine quarters of investing, the $5 million LACI Impact Fund I is nearly 100% deployed and has made equity investments in 15 LACI startups. The LACI Impact Fund empowers LACI founders to grow their early-stage cleantech companies, including ChargerHelp! CEO Kameale Terry which has gone on to build a nationwide network responsible for maintaining 30,000 EV charging stations while ensuring their technicians earn a minimum of $30 per hour with a guaranteed 40-hour work week. LACI is now out to market in raising LACI Impact Fund II.

Sample LACI Pilot Cleantech Debt Fund Recipients

Initial LACI’s pilot debt fund loans to startups include:

SparkCharge:  SparkCharge received a $40,000 low-interest loan for their on-demand mobile electric vehicle charging solutions. The company leveraged the funds to help scale operations, hire 40 employees, including a graduate of LACI’s Green Jobs Workforce Training Program, and develop the Roadie Portable EV Charging System. The loan from LACI’s Debt Fund also enabled SparkCharge to raise nearly $24 million in additional capital through equity and debt funding. On March 1, 2022, after the recent launch of SparkCharge’s Currently app, Kia America and Currently announced a partnership that provides EV owners with on-demand concierge service, allowing them to charge their EVs when and where they want.

Envoy: Envoy, a provider of shared, on-demand, community-based EV’s, also leveraged the LACI Debt Fund to grow their business. LACI selected Envoy to operate a pilot community car-share program for residents of the Housing Authority of City of Los Angeles’ (HACLA) Rancho San Pedro public housing complex. The program not only delivered the benefits of electric vehicles and mobility to this historically underserved community, LACI used the pilot as a model for the EVs For All Act introduced by Congresswoman Nanette Díaz Barragán (CA-44). Barragán worked closely with LACI to develop the Act. If passed, the bill will establish a $50 million annual grant program at the U.S. Department of Energy (DOE) to support EV car sharing and charging stations, community education and outreach, and other services for public housing residents to increase access to mobility solutions in transportation deserts.

About LACI

The Los Angeles Cleantech Incubator (LACI) is creating an inclusive green economy by unlocking innovation through helping scale cleantech startups, transforming markets through catalytic partnerships like the Transportation Electrification Partnership, and enhancing communities through green workforce training and pilots. Founded as an economic development initiative by the City of Los Angeles and its Department of Water & Power (LADWP) in 2011, LACI is recognized as one of the top 10 innovative business incubators in the world by UBI. To date, LACI has supported 315 startup companies that have secured more than $695 million in funding, generated more than $308 million in revenue, and helped to create an estimated 2,480 jobs with a long-term projected economic impact of more than $555 million.

About Sobrato Philanthropies

Sobrato Philanthropies’ investment in LACI’s Cleantech Debt Fund was committed by John A. Sobrato. Sobrato Philanthropies’ mission is to partner with communities to meet immediate needs, address systemic barriers, and pursue social justice to build a more equitable and sustainable world. Guided by the business philosophy and personal values of the Sobrato family, three generations engage in grantmaking, advocacy, impact investing, and collaborative efforts to create impact locally and around the world.

About Homecoming Capital

Homecoming Capital is a climate-focused investment firm that invests in businesses that decarbonize the economy as they grow. Homecoming’s investments span North America and Europe and support businesses driving decarbonization of the energy, transportation, industrial, and agricultural sectors. For more information, please visit www.homecomingcapital.com.

CA State Budget Support for Zero-Emission Vehicles and Infrastructure

The Honorable Gavin Newsom, Governor
State of California
State Capitol, Suite 1173
Sacramento, CA 95814

The Honorable Toni Atkins, President Pro Tempore
California State Senate
State Capitol, Room 205
Sacramento, CA 95814

The Honorable Anthony Rendon, Speaker
California State Assembly
State Capitol, Room 219
Sacramento, CA 95814

The Honorable Nancy Skinner, Chair
Senate Budget Committee
State Capitol, Room 5019
Sacramento, CA 95814

The Honorable Phil Ting, Chair
Assembly Budget Committee
State Capitol, Room 6026
Sacramento, CA 95814

Re: State Budget Support for Zero-Emission Vehicles and Infrastructure

Dear Governor Newsom, President Pro Tempore Atkins, Speaker Rendon, Chair Skinner, and Chair Ting:

We applaud the emphasis that each of your offices has placed on taking concrete steps and making bold investments to address dirty air and climate change. The need for state investment to accelerate zero-emission (ZE) vehicle adoption has never been more urgent, nor has the state ever had the means, as it does today, to enact change. The state surplus presents a once in a lifetime opportunity to lay the strong foundation for an accelerated and equitable transition to a zero-emission freight transportation system.

The entities listed below represent a broad coalition of stakeholders that firmly believe a major investment in zero-emission goods movement vehicles and supporting infrastructure must be made in the 2021-22 budget. We urge you to dedicate an additional $2.25 Billion towards the state’s transition to zero- emissions for drayage trucks and cargo handling equipment. This aligns with Executive Order N-79-20, our urgent need for clean air, the Transportation Electrification Partnership’s target for 40% ZE drayage trucks by 2028, and our ambitious yet achievable shared goals of achieving 100% ZE cargo handling equipment and drayage trucks. State investment, coupled with supporting regulation and policies can ensure establishment of a strong market for ZE freight vehicles. Investments are needed in vehicles, supporting infrastructure, workforce training to operate and maintain zero-emission equipment and infrastructure, and a means to offset the insurance costs for these new vehicles. Specifically, we are asking for the 2021-22

California budget to include:

  • $1 Billion for the California Air Resources Board’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), Zero and Near Zero-Emission Freight Facilities (ZANZEFF), and Clean Off-Road Equipment (CORE) programs to fund human operated zero-emission drayage and cargo handling equipment;
  • $1 Billion for the California Energy Commission to fund charging infrastructure that supports EO N-79-20 implementation at California’s container ports;
  • $100 Million for expanding the availability and affordability of zero-emission drayage truck insurance for truck owners/drivers; and
  • $150 Million for workforce training to maintain and operate zero-emission goods movement vehicles and supporting equipment.

In addition to investment in equipment and infrastructure, we believe complementary investment to ensure that the jobs associated with our transition are captured here in California, especially in underserved and frontline communities. Creation of green jobs must be supported by this level of investment; so too should the transition of incumbent workers into the new, greener goods movement system. The existing supply chain workforce is comprised of millions of middle-class Californians. The state must play a stronger role in funding the transition to zero emission heavy duty trucks and equipment and building the supporting infrastructure to build strong local economies while fighting climate change and cutting air pollution.

We share your goals of reducing greenhouse gas emissions, improving air quality and public health, and transitioning to zero-emission vehicles and cargo handling equipment. Our commitment to this goal is evident in our collective global leadership to innovate and implement cutting-edge emission reduction practices. To continue this trajectory, it is imperative that the state’s policy leadership be accompanied by major fiscal investments to achieve these goals. We look forward to continuing to work with your offices and stakeholders on additional policy issues accompanying fleet transition; however, we believe the time is now for the State of California to embrace its unique role in making bold “market maker” investments. This is a once in a lifetime opportunity to make the essential steps towards stemming climate change with new, clean technologies.

 

Thank you for your consideration,
A3PCON (Asian Pacific Planning and Policy Council) Environmental Justice Committee
Bay Area Council
BYD
California Association of Port Authorities (CAPA)
California Business Alliance for a Clean Economy
Communities for a Better Environment
EarthJustice
East Bay Community Energy
East Yard Communities for Environmental Justice
Environmental Defense Fund (EDF)
Harbor Trucking Association
International Longshore and Warehouse Union – Locals 13, 63 and 94
Long Beach Alliance for Children with Asthma (LBACA)
Long Beach Mayor Robert Garcia
Los Angeles Area Chamber of Commerce
Los Angeles County Supervisor Janice Hahn
Los Angeles County Truck and Bus Coalition
Los Angeles IBEW/NECA Labor Management Cooperation Committee (or LMCC)
Los Angeles Mayor Eric Garcetti
Los Angeles City Councilmember Joe Buscaino
Los Angeles Clean Tech Incubator (LACI)
Los Angeles Department of Water and Power (LADWP)
PCS Energy
People’s Collective for Environmental Justice
Port of Hueneme
Port of Oakland
Port of Long Beach
Port of Los Angeles
Port of Richmond
Port of San Francisco
San Pedro and Peninsula Homeowners Coalition
Sierra Club
Southern California Edison
Union of Concerned Scientists
Urban Movement Labs
Warehouse Worker Resource Center
XOS Trucks

View The Official Letter Here: