Inflation Reduction Act Gives Hope

The federal IRA massively moves the climate needle from despair to hope.

The massive $370 billion act opens a new chapter for US climate leadership. The IRA accelerates US decarbonization from about 24% to about 39% reductions by 2030, significantly delivering on President Biden’s target of cutting US greenhouse gas (GHG) emissions 50-52% by 2030. Now US climate investments can compete with the EU’s superior progress on many fronts.

The new funding opportunities for clean energy for households, businesses, and jurisdictions are too numerous to list. Many of the details are still in rulemaking and won’t be finalized until 2023. An internet search is more likely to find specifics, but here are some general links:

IRA Clean Energy Guidebook

IRA Summary from USDOE

IRA provisions for clean energy and affordable housing

Guide to renewable energy provisions

Some tax impacts

A quick note about Oregon Senator Wyden’s role in the IRA: Behind the news coverage of the messy Senate negotiations leading up to the IRA, Senator Wyden was doggedly negotiating with Senator Manchin to nail down enough details to pass the strong decarbonization provisions. Senator Wyden was not in the media spotlight, but played a vital role.