California Primary Care Center Promotes Environmental Health With CDFI Support
Client: San Fernando Community Health Center
Client Location: San Fernando, CA
CDFI: Community Health Center Capital Fund
CDFI Service Area: AZ, CA, GA, MA, MI, NY, OH, PA, RI, TX, WA
Financing and technical assistance through OFN’s Renewable and Energy Efficiency program
When Audrey Simons became CEO of San Fernando Community Health Center (SFCHC) in 2013, she transformed the organization into a federally qualified health center (FQHC). This transition aimed to provide comprehensive medical care services to all, particularly underserved communities with limited access to healthcare. Simons has also made the transition to cleaner energy a top priority.
“As climate change becomes more and more evident, health centers have a particular responsibility to mitigate our climate impact. As FQHCs, we understand that health is not just a doctor’s appointment; health is the environment,” Audrey said.
SFCHC was able to secure funding for this project through a program created with OFN member Community Health Center Capital Fund (Capital Fund) and its partnership with solar developer Collective Energy and the National Association of Community Health Centers, called Community Health Access to Resilient Green Energy, or CHARGE.
These efforts aimed to educate health centers across the U.S. about innovative energy solutions, including the solar-plus-storage system. This solution combines solar power generation with energy storage technology, allowing excess energy to be stored for later use.
CDFIs Lead the Charge to Environmental Health and Clean Energy Transition
SFCHC wanted to adopt clean energy solutions to benefit their patients and community. However, they needed financial support to purchase the system outright.
Capital Fund partnered with Collective Energy to enable low-cost capital for the installation. With OFN’s support, Capital Fund and Collective Energy provided funding for a long-term energy contract for SFCHC. Collective Energy covered all upfront costs, including system design, engineering, and installation by a local installer, and facilitated SFCHC’s use of federal tax credits and incentives to make the payments affordable.
They helped SFCHC navigate utility company procedures to connect the system to the grid, ensuring it became operational. This type of assistance is vital for health centers with limited resources, allowing them to lower costs, reduce their carbon footprint, and make the center more resilient for patients and the community.
Capital Fund provided Collective Energy with financing and technical assistance, including securing a guarantee from The Kresge Foundation for the capital stack. Together, they crafted the legal documents and deployment flow to create a replicable model for other health centers.
SFCHC secured low-power costs for 15 years by signing an energy services agreement. This agreement has made the system more affordable and will improve future resilience.
Building Sustainable and Climate-Resilient Health Systems
The healthcare industry is vulnerable to the effects of climate change. It’s also a major contributor. In fact, healthcare facilities are heavily dependent on energy, with hospitals ranking as some of the most energy-consuming structures.
According to the Agency for Healthcare Research and Quality, the U.S. healthcare sector contributes to approximately 25% of all greenhouse gas emissions produced by healthcare sectors worldwide and 10% of national emissions.
Mitigating environmental impact is essential for reducing emissions, protecting public health from the adverse effects of climate change, and fostering a more resilient ecosystem.
CDFIs are uniquely positioned for this moment. They are receiving a historic influx of federal, climate-focused capital to finance clean energy technology, improve health outcomes, lower energy costs, create high-quality jobs, and more in communities most affected by climate change.
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