What you need to know about the Inflation Reduction Act
Historic legislation in the fight against climate change was signed into law by President Joe Biden on Aug 16th, marking a huge step forward in achieving net-zero carbon emissions for the US, but some climate activists warn it may lead to the past repeating itself.
Being touted as “the single biggest climate investment in U.S. history”, the Inflation Reduction Act has lofty expectations. It combines high levels of investment in clean energy production and construction with a combination of tax incentives, rebates, and grants for individual consumers, businesses (including nonprofits!), and the intent to address the disproportionate impact climate change has had on the environment and public health outcomes in low-income communities.
The Inflation Reduction Act aims to reduce our carbon emissions by 40 percent by the end of the decade.
The Act has incredible potential to reduce carbon emissions if investments are used wisely. Billions of dollars have been earmarked for consumers to switch to electric appliances and energy-efficient home remodeling, include a portion reserved only for affordable housing. To accomplish this, the bill also enables the expedited production of clean energy technology made domestically, which would also foster a dependable energy sector and bolster the economy. Combined, these two facets of the Inflation Reduction Act have the potential to power 110 million homes using only clean energy.
Some specifics from the IRA include:
$3 billion being allocated for the USPS to transition to a zero-emission fleet of vehicles
$1 billion dollars to be spent in disadvantaged communities on clean heavy-duty vehicles
Consumers will have many ways to benefit directly - from EV tax credits, to home energy efficiency funding, to savings from the IRA. Use this quick tool from Rewiring America to see a list of discounts and estimate what you’ll save: Calculate your savings from the IRA.
“The Inflation Reduction Act is a major step towards sustainable family jobs, healthy communities, and more.”
-Anjuli Ramos-Busot, NJ State Director for The Sierra Club
Some, including Senator Bernie Sanders, criticize the bill including a deal where each year before renewable energy development can be approved, fossil fuel companies will be able to bid on public land and water, adding up to over 700 million acres over the next decade. Additionally, the previously ‘dead’ Mountain Valley Pipeline has been green-lit and future permits for pipelines and other fossil fuel infrastructure will be easier to acquire.
