Federal Funding Update

Briefing on the Inflation Reduction Act (IRA) from Re-Wiring America – An overview of the climate and electrification provisions for disadvantaged communities in the Inflation Reduction Act. The Inflation Reduction Act will invest $61 billion for climate and electrification in disadvantaged communities.

Game-changing policies in the Inflation Reduction Act
By Fresh Energy August 8, 2022

Inflation Reduction Act One Page Summary US Senate

What’s in the Climate, Tax and Health Care Package
NYT Aug 7

The bill includes the largest expenditures ever made by the federal government to slow global warming and to reduce demand for the fossil fuels that are primarily responsible for causing climate change

It would invest nearly $400 billion over 10 years in tax credits aimed at steering consumers to electric vehicles and prodding electric utilities toward renewable energy sources like wind or solar power.

Energy experts said the measure would help the United States to cut greenhouse gas emissions about 40 percent below 2005 levels by the end of this decade. That puts the Biden administration in striking distance of meeting its goal of cutting emissions roughly in half by 2030

The tax credits include

  • $30 billion to speed the production of solar panels, wind turbines, batteries and critical minerals processing;
  • $10 billion to build facilities to manufacture things like electric vehicles and solar panels; and
  • $500 million through the Defense Production Act for heat pumps and critical minerals processing.
  • $60 billion to help disadvantaged areas that are disproportionately affected by climate change, including
  • $27 billion for the creation of what would be the first national “green bank” to help drive investments in clean energy projects — particularly in poor communities
  • The bill would also force oil and gas companies to pay fees as high as $1,500 a ton to address excess leaks of methane, a powerful greenhouse gas, and it would undo a 10-year moratorium on offshore wind leasing established by President Donald J. Trump.

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