Guidance Calls on Agencies To Use CEJST Economic Justice Tool

Numerous federal financial assistance notices of funding opportunity (NOFOs) currently allude to provisions aimed at meeting the Biden administration’s Justice40 Initiative, which encourages federal agencies to ensure that at least 40% of the benefits of federal investments flow to disadvantaged communities that are marginalized, underserved and overburdened by pollution. The White House last week issued guidance adding an addendum to its Justice40 interim implementation guidance calling for federal agencies to use a geospatial Climate and Economic Justice Screening Tool (CEJST), which was released in its Version 1.0 format in November 2022, to define and identify disadvantaged communities.

The CEJST includes interactive maps that detail census tracts that are overburdened and underserved. It also considers federally recognized tribes, including Alaska Native villages, as disadvantaged communities. “Federal agencies should now start using the CEJST to identify geographically defined disadvantaged communities for any covered programs under the Justice40 Initiative and for programs where a statute directs resources to disadvantaged communities, to the maximum extent possible and permitted by law,” according to Office of Management and Budget Memorandum M-23-09, adding that agencies should use “best efforts to transition to the CEJST as expeditiously as possible.” By October (the start of federal fiscal year 2024), agencies are expected to use the CEJST for any covered investments that fall under the Justice40 interim guidance.

Agencies that have already issued NOFOs that use another tool or methodology for geographically identifying disadvantaged communities that is consistent with the Justice40 interim guidance are not expected to switch to using the CEJST. However, as agencies issue new funding announcements for covered programs, they are expected to use the CEJST “to the maximum extent permitted by law.” If an agency faces a special circumstance where it may need another tool in exception to using the CEJST, it must inform the Council on Environmental Quality no later than 30 days prior to its use.

Although this new guidance applies to federal agencies, potential applicants and recipients of federal awards should become familiar with the CEJST to understand what it is and how federal agencies will use the tool when making awards going forward.

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