Critical Impact:
A Win-Win-Win: IRA Has Created More Than 100,000 New Jobs, Is Bringing In Investment, & Is Ensuring a Livable Planet
Earlier this month during his state of the union address, President Biden touted that the IRA has already created more than 100,000 new good-paying climate and clean energy jobs since it became law about six months ago. From Michiganto Nevada, and in communities throughout the country, the IRA is creating a thriving environment of steadily flowing business that is putting money back into the pockets of workers—many of them in communities that need it most. The IRA’s investments aren’t slowing down job creation any time soon, leaving a just and thriving clean energy economy that Americans will reap the benefits of for years to come.
Our take on the latest developments in the IRA’s real-world impact:
“The IRA has made it clear: we can protect our chance at a livable future while protecting American pocketbooks,” said Evergreen Action Deputy Press Secretary Elizabeth Cavalieri. “With more than 100,000 new jobs created by the IRA in a mere 6 months, there’s no denying that bold climate action benefits our communities and our economy. The IRA has created a win-win-win environment for the U.S.; one where private investment is finding root, people are making a living wage, and we are building a safer and more prosperous future in a thriving clean energy economy. The IRA is doing exactly what it was created to do: creating hundreds of thousands of good-paying jobs while delivering clean energy and bold climate action.”
Additional Impact:
The Model | Evergreen Action | 2.21.23
Watch the story of Akinlana Abdalla (or ‘AK’ as he is known around his shop), a wind turbine repair specialist with Ingeteam, Inc., where he helps train the incoming wave of union workers who will build our clean energy future. AK grew up in Milwaukee, Wisconsin, a city known for its manufacturing roots but hit hard by deindustrialization. Thanks to a surge in federal clean energy investments through the Inflation Reduction Act (IRA), as well as the leadership of Governor Evers, good-paying union jobs are heading back into Rust Belt cities like Milwaukee…Watch the full video here.
The Evergreen Action Path to Reaching 100% Clean Energy | Entrepreneur | Abe Issa | 2.15.23
One of the most critical efforts resulting from the bill is an investment in new infrastructure needed for clean electricity transmission. That infrastructure is much easier to develop in urban areas, such as with convenient EV battery chargers in parking lots. Rural areas face significant challenges. That's why the IRA includes a vital $12.8 billion for rural utility financing. This money is designed to help rural areas transition to clean sources of power, forgive debts associated with high-carbon fuel sources so they can be more easily retired, and much more. It also provides funding for new public transmission lines and other important components that will be needed to meet future goals…The IRA includes tax credits and other various tools to help encourage businesses to adopt clean energy practices. If your business (especially those involved in any kind of energy or infrastructure work) hasn't looked at IRA programs, now is the time to begin. Brushing up on government bid experience is also advisable.
EPA Projects IRA Will Result In Coal ‘No Longer Needed’ For Baseload Power | Inside EPA | 2.15.23
EPA is presenting initial projections that the Inflation Reduction Act’s (IRA) clean energy incentives could mean that coal-fired electricity will no longer be needed to provide “baseload” power generation in the coming years, and that the law could lead to a 90 percent reduction in coal plants’ overall capacity. The initial modeling results were presented Feb. 15 by Cara Marcy, an EPA electricity analyst, during a Resources for the Future (RFF) event…
Biden Earmarks Billions for Rooftop Solar Under Climate Law | Bloomberg | Jennifer A Dlouhy | 2.14.23
The Biden administration laid out plans to steer $7 billion toward residential and community solar projects in disadvantaged communities, while signaling it intended to widely distribute roughly $20 billion from last year’s climate law to catalyze clean energy investments nationwide…The initial spending blueprint marks a major milestone for the $27 billion Greenhouse Gas Reduction Fund, a centerpiece of last year’s tax-and-climate law meant to drive the deployment of solar panels, heat pumps and electric vehicles around the nation. The Inflation Reduction Act left major questions — including precisely who should get the funding — to the EPA, which is tasked with ensuring at least 40% of the benefits flow to impoverished communities often neglected by commercial lenders.
EPA Prioritizes Low-Income Solar In Early Design Of $27 Billion GHG Fund | Inside EPA | 2.14.23
EPA is detailing the initial design of its mammoth $27 billion Inflation Reduction Act (IRA) grant program to spur private investment in projects that reduce greenhouse gas emissions, revealing a heavy focus on deploying solar energy in low-income and disadvantaged communities.
Electrifying US ports could drive sharp cuts in air pollution | Canary Media | Maria Gallucci | 2.14.23
America’s waterfront communities could see a dramatic reduction in toxic air pollution if ports powered ships and trucks using only electricity instead of exhaust-spewing diesel engines, a new analysis found. Researchers at the International Council on Clean Transportation recently quantified the potential reductions near two hubs in particular: the Port of New York and New Jersey and the Port of Seattle, the nation’s third- and fourth-busiest gateways, respectively…The Inflation Reduction Act includes $3 billion to help ports adopt zero-emissions technologies and create plans for addressing climate change. Another $1 billion could help electrify drayage trucks that carry cargo containers. Separately, 2021’s infrastructure law includes $17 billion for upgrading ports and crucial waterways. Some of those funds are being used to help ports in California, Florida, Ohio and Oregon to electrify cargo-handling equipment, build up charging infrastructure and allow more arriving ships to connect to the grid while at berth.
Chart: Americans bought more heat pumps than gas furnaces last year | Canary Media | Maria Virginia Olano | 2.10.23
Americans are buying more heat pumps for their homes than ever before. U.S. annual sales rose above 4 million units for the first time in 2022, outpacing sales of gas-powered furnaces…Policy incentives have also bolstered heat-pump adoption. “There are some very successful state and local programs that are driving sales and increasing market adoption in states where they haven’t been traditionally adopted, like Maine, Massachusetts and California,” Noah Goldmann, a policy analyst at pro-electrification nonprofit Rewiring America, told Canary Media. And now there are new federal incentives for heat pumps from the Inflation Reduction Act — tax credits for certain models are available to all households, plus rebates of up to $8,000 for lower-income homeowners.
Electric Vehicles Could Match Gasoline Cars on Price This Year | The New York Times | Jack Ewing | 2.10.23
Increased competition, government incentives and falling prices for lithium and other battery materials are making electric vehicles noticeably more affordable. The tipping point when electric vehicles become as cheap as or cheaper than cars with internal combustion engines could arrive this year for some mass market models and is already the case for some luxury vehicles…Major impetus for the price cuts came from the Inflation Reduction Act, legislation passed by Democrats in Congress last year that provides tax credits of up to $7,500 for electric car buyers. To qualify, battery-powered or plug-in hybrid sedans have to sell for less than $55,000, while pickups and sport utility vehicles qualify only if the retail price is below $80,000. By cutting prices, Ford and Tesla increased the number of models that could benefit from the tax credits.
Can individuals solve climate change? New federal cash makes it more possible than ever. | The Washington Post | Shannon Osaka | 2.9.23
According to data from Princeton University, roughly 30 percent of the emissions reductions from the bill expected over the next decade will come from consumers switching to electric vehicles and a transformation in home heating and appliances. It’s true that individuals did not cause climate change. But they may be key to stopping it…“All of these things are fossil fuel machines,” Stokes said. “And we have power over them as individuals and households.” That’s why the Inflation Reduction Act includes huge sums of money to help households move away from those oil and gas-fueled machines: $7.5 billion in electric vehicle tax credits, $24 billion in credits to electrify homes. (Individuals can get up to $7,500 off an electric car, $2,000 off a heat pump, and more.)
Legislative conservation agenda includes wildlife crossings, EV trucks, and septic tanks | Nevada Current | Jeniffer Solis | 2.8.23
During the Tuesday event covering the Nevada Conservation League’s legislative priorities, the advocacy group said they also plan to push for financial incentives for medium and heavy duty electric vehicles. Although medium and heavy-duty vehicles make up only 5% of vehicles on the road, they’re responsible for 30% of carbon pollution from the transportation sector, said Christi Cabrera-Georgeson, the deputy director of the Nevada Conservation League. Watts proposed legislation that could leverage federal funding to create a state incentive program for medium and heavy-duty electric vehicles, including the electrification of school and transit buses. Funding for the bill would come from the Inflation Reduction Act which contains tax credits that boost adoption of medium- and heavy-duty electric vehicles. The law allocates $1 billion to states, municipalities, tribes, or non-profit schools to replace heavy-duty vehicles with electric vehicles.
How utilities can prepare for Inflation Reduction Act impacts via bipartisan infrastructure law planning | Utility Dive | Michael Jung | 2.8.23
For electric utility leaders, planning for IRA impacts may seem less pressing than pursuing more immediate funding opportunities for grid infrastructure through the preceding bipartisan infrastructure law, or BIL. However, the IRA’s rebates and credits will accelerate the electrification of energy utilization in homes and businesses, as well as boost the adoption of personal and commercial electric vehicles. In turn, utilities will see a substantial increase in demand and change in utilization patterns. Electric power utilities will need to prepare their infrastructure and business processes to meet the expectations of customers who are transitioning to increasingly electrified technologies.
Solar will provide 54% of new US generating capacity in 2023, with 29.1 GW added, EIA forecasts | Utility Dive | Diana DiGangi | 2.7.23
Developers aim to add 29.1 GW of solar generating capacity to the U.S. grid in 2023, accounting for 54% of planned new capacity for the year, the U.S. Energy Information Administration announced Monday. EIA said 54.5 GW of total capacity is expected to come online this year, with solar ahead of the other sources. Battery storage has the second highest amount of capacity expected to come online this year at 9.4 GW, or 17% of the total, while 6 GW of wind capacity is expected…The implementation of the Inflation Reduction Act and the tax credits it contained for solar production and projects are expected to drive both domestic supply and demand for solar components. Solar manufacturers First Solar and Hanwha Q Cells both recently announced billions of dollars of investments in the solar supply chain.
All the Governor needs to know is that $2 BILLION and thousands of good-paying jobs are coming to Nevada thanks to @POTUS | Secretary Granholm | 2.7.23
Big subsidies and ‘shovel ready’ sites: US states woo clean energy firms | Financial Times | 2.7.23
Developers of projects from electric car plants to green hydrogen refineries are getting red-carpet treatment from state and local officials. Long vying with one another for inbound investment, some states have revamped subsidy schemes in response to last year’s passage of the landmark US Inflation Reduction Act climate law. Please use the sharing tools found via the share button at the top or side of articles…The federal climate law has changed the equation, making it likely that more of these sites will be used for manufacturing of EVs, batteries or renewable energy equipment, all of which benefit from new or expanded federal tax credits. The state legislature of Illinois last month passed extra credits for cleantech developers, for example.
Unlocking the IRA: Six Key Opportunities for State Policymakers | Evergreen Action | 2.6.23
IRA programs provide funding directly to state governments to promote home energy efficiency, fund decarbonization projects, create equitable green financial institutions, and more. But to take full advantage of these federal funds, states must be ready to apply for funds and to use them well. Strategic use of IRA dollars and well-designed state-level programs have the potential to create thousands of jobs, lower energy costs for Americans, drive investment into disadvantaged communities, and put states on the path to meeting their own climate and economic development goals. To help state officials take full advantage of opportunities in the IRA, Evergreen and RMI produced a series of memos that contain: Guidance on applying for specific IRA programs, Program implementation recommendations to ensure efficient, effective and equitable implementation, Timelines and deadlines to access funds, Pitfalls to avoid, Other important considerations to maximize impact of federal funds
SunPower solar to top three multi-family buildings in California | pv magazine | Michael Shoeck | 2.2.23
SunPower, a residential solar and energy storage provider, signed three new California multi-family housing customers to its multi-family solar business, underscoring progress toward providing solar to a larger group of people in apartment dwellings. Builders of apartment buildings can reduce out-of-pocket expenses required to install solar by taking advantage of state and federal incentives such as the Inflation Reduction Act (IRA), and distribute the economic benefits back to residents. Income generated from the sale of solar energy by the building owner can help offset the solar investment more quickly. U.S. housing developers are expected to build 4.3 million new apartment units over the next 12 years, according to the National Multifamily Housing Council and National Apartment Association. SunPower helps builders lower their operating costs and build sustainable residences with solar-as-a-service by using solar systems and storage.
Interested in chatting with our team more about what these impacts mean for climate and clean energy? Reach out to us at elizabeth@evergreenaction.com.