USA - How States Can Finance Coastal Resilience Before the Next Disaster
As climate change drives more intense storms, hurricane-related costs in the United States have increased 1,100% since 1980, and the population of counties prone to hurricane damage has increased at least 22% faster than the overall U.S. population has grown.
State governments must prioritize rebuilding better and investing in climate resilience now to avoid the skyrocketing costs of future disasters. Every $1 invested to mitigate a disaster saves $6 in recovery.
These four states found innovative ways to finance climate resilience, and they provide models for other states to follow, even in the face of budget uncertainty.
North Carolina maximizes public and private funding
At the end of June, the North Carolina legislature passed the NC SECURE Act, which streamlines funding and implementation of mitigation and restoration projects that store floodwater and decrease flood risk.
The legislation creates a voluntary program that can be funded by state and federal appropriations, including funds from federal disaster relief. It prioritizes natural infrastructure solutions to store floodwater and creates a first-of-its kind flood reduction marketplace to engage private businesses in meeting watershed flood storage targets.
Texas turns to its rainy-day fund
In the devastating aftermath of Hurricane Harvey, Texas lawmakers voted to fund flood mitigation projects using a $1.7 billion transfer from the state’s aptly named rainy day fund.
The resulting Flood Infrastructure Fund, which Texas voters approved after it passed the legislature, provides $793 million in low-interest loans and grants for flood drainage, mitigation and control projects.
The transfer also seeded the Texas Infrastructure Resiliency Fund, which consists of four separate accounts to fund flood data collection, mitigation project grants, Hurricane Harvey recovery and flood plan development. It will also provide the state with matching dollars to secure federal flood project assistance from the Army Corps of Engineers.
Virginia and New Jersey harness greenhouse gas market revenue
Virginia and New Jersey both will fund climate resilience projects with revenue from the Regional Greenhouse Gas Initiative — a carbon emissions cap-and-invest program for the electricity sector that includes 10 Northeastern states.