the momentum of this moment
Last week, the Senate floor erupted in celebration after passing the Inflation Reduction Act, the most significant climate legislation in U.S. history.
The VERY good news: This signals a new era of climate policy in America.
Experts believe the legislation can dramatically accelerate the decline in U.S. emissions, putting us within reach of our goal of cutting emissions in half by 2030; compared to 2005 levels.
This climate bill will invest $369 billion in energy and climate change programs over the next decade, including incentives to advance renewable energy and electric vehicles.
Finally, U.S. governance has come to the aid of the earth in a way that is impactful.
Tax credits will be available for companies which build wind and solar power along with many other clean energy technologies. The credits, which last ten years, will support the creation of decarbonized energy systems and, greatly impact our emissions management capabilities. Beyond that, a range of industries will also look to decarbonize. Airlines will get credit for buying sustainable aviation biofuels. Industrial orgs will receive incentives to capture and store carbon in their production process.
Financially, it’s transformative in that it provides long-term investment certainty, having the potential to mobilize capital and job creation in such a way that has never before been experienced to such a magnitude. EVER.
Further, the legislation gives the Department of Energy the authority to loan private companies up to $250 billion to advance clean energy programs, which is the same type of loan which Tesla received a decade ago.
the individual incentives
At an individual level, incentives for green home renovation will create opportunities for Americans to create homes which are more energy efficient. Analysts predict that these efficiencies combined with renewable power will reduce energy prices.
Also, incentives for electric vehicles: buyers can receive a tax credit of up to $7,500 per vehicle, if the vehicle is under $55K.
the $369 billion breakdown:
Here are the high level industries in which the majority of dollars will go:
Roughly $30 billion towards solar panel, wind turbine, critical mineral and battery production.
Around $10 billion to build manufacturing facilities for renewable energy and electric vehicles.
Available through the Defense Production Act, the bill allocates $500 million for heat pumps and critical mineral production.
Around $9 billion will go towards rebates for home improvements to conserve energy, with an additional $1 billion to make public housing more green.
The bill establishes a $27 billion clean energy loan fund that, according to Vox, will finance renewable energy and remediation projects in low-income areas.
next, environmental justice benefactors
The bill also directs around $60 billion towards environmental justice initiatives. This includes:
Around $15 billion earmarked for reducing emissions and clean energy projects in low-income communities.
Community groups, tribal, state and local governments can apply for $3 billion in block grants intended for things like weather resilience, abandoned mine reclamation and air quality monitoring.
Roughly $2.25 billion to reduce air pollution at ports, which includes installing zero-emission equipment, planning and permitting associated with reducing pollution and developing “qualified climate action plans.”
and, overdue federal land management
Finally, it attempts to put more money into federal land management, which includes:
Roughly $1.8 billion for fuel reduction projects on National Forest land in the urban-wildland interface.
An additional $200 million for vegetation management projects, designed to reduce dangerous fuels and restore forests. About $50 million will also go towards protecting old growth forests.
Over $2 billion in grants that, among other forest management projects, will fund “tree planting and related activities.” States, local governments and tribes are all eligible.
Around $1 million in technical assistance for conservation projects through the Natural Resources Conservation Service.
A push to hire more National Park Service employees, appropriating $500 million through 2030 to bolster staff. The park service will also see $200 million to address its deferred maintenance backlog.
More funding to the Bureau of Reclamation, which will now have $4 billion available for grants and contracts for drought resilience with an emphasis on the Colorado River Basin, $550 million for water supply projects, and $25 million for canal improvement projects.
Up to $250 million for conservation and resource protection on National Park Service and Bureau of Land Management land.
and finally, the oil + gas.
Remember how West Virginia Democratic Sen. Joe Manchin stood as one of the bill’s biggest roadblocks during the months of negotiations? He ensured these concessions for fossil fuel production before throwing his support behind the bill. They include:
Requiring at least 60 million acres of offshore leases available each year, including new oil drilling leases in the Gulf of Mexico and Alaska.
Expanding tax credits for carbon capture technology, allowing coal plants to operate with reduced emissions.
Making more fossil fuel leases available for every renewable project on federal land approved by the U.S. Department of the Interior.
However, the bill also restructures the federal leasing system, requiring oil and gas companies to pay before they nominate public land for production, which, according to the public land advocacy group Western Priorities, will force companies to pay more royalties.
It also:
Bumps the minimum bid for an onshore lease from $2 per acre to $10 per acre.
Repeals a freeze on offshore wind power leases that Trump enacted.
Requires oil and gas companies to pay up to $1,500 in fees for methane leaks.
In no uncertain terms, this is the most amazing, wonderful, awesome, stupendous set of bullet points for America + our collective future. Yet, this is only the beginning - and will hopefully establish America’s commitment to climate in the world stage.
