The Inflation Reduction Bill- Will 369 Billion Save the Planet?
The Inflation reduction act of 2022 represents the largest investment in climate repair in US History by far. It is estimated to reduce emissions by 40% by 2030. So, will this legislation save the planet from this spiraling overheating? No, not in my opinion. This bill however is designed to kick start multiple segments of clean energy and that will certainly help.
Aside from reducing the deficit, protecting health care access and reducing prescription drug pricing, this bill is mostly focused on proving a path for consumers, home and building operators to convert to more expensive equipment that is less costly to operate. Like Electric vehicles. This bill is loaded, and not necessary all bad for big corporate and gas and oil. Today we will not debate the good or bad in the legislation instead we focus on what is in the bill and how that effects the planet. What is not mentioned enough is this bills ability to wean the US completely from Foreign oil dependence and the need to source renewable and clean energy tech offshore.
The bill includes multiple tax credits and other financial incentives aimed at making clean energy options more affordable for consumers, with a particular focus on those who are lower- to middle-income. Appliances impacted like home heaters, water heaters and clothes dryers, will encourage conversion to electric and electric heat pump.
· $9 billion in home energy rebate programs to encourage conversion for electrification of their home appliances and for energy-efficient retrofits, with a focus on low-income consumers
· Consumer tax credits For 10 Years to make heat pumps, rooftop solar, electric HVAC and water heaters more affordable, which make homes more energy efficient
· $7,500 in consumer tax credits for lower- and middle-income individuals who buy new electric vehicles, and $4,000 in tax credits for used EVs
· $1 billion grant program to make affordable housing more energy efficient
According to Destenie Nock, an assistant professor of civil and environmental engineering at Carnegie Mellon University. multiple elements of this bill aim to help reduce fossil fuel generation by targeting the demand side of energy use.
A key facet of the bill locks in tax credits for the next decade for solar and wind energy.
Important provisions are also included for domestic mining of materials that are needed to make solar panels and batteries, as well as for the offshore wind development industry, “like building large ships that are needed to build offshore wind
The package includes more than $60 billion to support US clean energy manufacturing, attempting to ease inflation and eliminate future price spike of the grid.
Production tax credits to help U.S. manufacturers accelerate production of solar panels, wind turbines, batteries, and process key minerals near 30 billion
· $10 billion investment tax credit for additional manufacturing facilities that make EVs, wind turbines and solar panels
· $500 million as well as the use of the Defense Production Act to speed manufacturing of things like heat pumps, as well as processing of critical minerals
· $2 billion in grants to help automaker facilities transition to electric vehicle production
· $2 Billion in grants for manufacturers to re-tool to build Electric Vehicles
· Up to $20 billion in loans to construct new manufacturing facilities for clean electric vehicles
· $2 Billion For national labs to accelerate breakthrough energy research
· $30 billion To States and utilities to transition to clean energy
· Tax Credits and grants for clean fuels and clean commercial vehicles
· $6 Billion in Grants and tax credits for industrial and manufacturing plants to convert to more advanced technologies. Mostly for chemical, cement, steel and power plants.
· $9 billion for federal procurement of energy saving technologies including $3 billion for Postal EV’s.
· $27 billion in clean energy technology Accelerator Will support the deployment of efficiency tech especially in low income communities.
· A Methane Reduction Program
· $3 billion in Environmental Climate Justice Grants
· $3 billion in Neighborhood access Grants to clean urban transportation and connect communities
· $3 billion to reduce pollution at ports
· $1 billion for clean public vehicles like buses and garbage trucks
· $20 billion in Climate smart Agricultural practices
· $5 Billion in grants to support fire resilient communities, forest conservation and urban tree planting
· $2.6 billion to rebuild coastal habitats
I told you that there is a lot here and it will take years to see the results of these programs. The key is to understand the offerings and see what is in it for your family or your facility and how it can be used to reduce future fixed expenses.
