Biden signs most significant climate investment in US History
August 16, 2022
President Biden signed the Inflation Reduction Act (IRA) into law on Tuesday, August 16th, which contains $369 billion in funding to build clean-energy infrastructure, accelerate the transition to electric vehicles, improve energy efficiency, and ensure environmental justice. The passage of this law marks the largest investment ever in sustainability and climate in the history of the United States.
The new law will slash climate pollution by an estimated 40% over the next decade by incentivizing stakeholders across sectors to Invest in Our Planet. In the process, over 9 million new clean energy and environmental jobs are projected to be created by the end of the decade, in addition to revitalizing American manufacturing by supporting domestic production of clean energy & transportation technology. The Inflation Reduction Act will even pay for itself by generating an estimated $300 billion surplus, all without having any effect on most Americans’ taxes.
How Does the IRA Work to Solve Climate?
- Major investment in renewable energy infrastructure with $260 billion in clean-energy tax credits, reducing emissions from electricity by 80%
- ~$80 billion in incentives to modernize transportation through electric vehicle rebates
- Formation of a $27 billion Green Bank to rapidly deploy clean energy tech
- $1.5 billion in incentives for methane reductions
- Supports the EPA cleaning up air pollution around schools and ports
- Reduces emissions from trucks and heavy-duty vehicles
- Provide health care to coal miners suffering from black lung
- $4 billion in funding to combat droughts
- Additional funding for homeowners to increase energy and water conservation
How Does the IRA Help American Families?
- Tax incentives that can help low- and moderate-income families save money on their energy bills, leading to potential up-front savings of $28,500 per household
- The average family is projected to annually spend $1,025 less on energy in 2030 than it does today
- Up to $7500 in tax credits for purchasing electric vehicles
- $7000 average savings on installing rooftop solar panels
- Up to $14,000 in rebates to switch over to electric appliances.
- More tax cuts and rebates for implementing energy efficiency measures
- This law protects public health, preventing up to 3,900 premature deaths, 100,000 asthma attacks, and 417,000 lost workdays annually by 2030
- The IRA won’t impact taxes for any private citizens
The Inflation Reduction Act brings the country well within range of meeting its Paris Agreement commitment to cut U.S. emissions in half by the end of the decade; however, the IRA alone falls short of the nation’s net zero commitments for 2030 and 2050. To reach these goals, cooperation from state and local governments is essential; many officials, such as the Governor of Colorado and Mayor of DC, have already made significant progress and recently committed to deploying further strategies to reduce emissions. Be a part of our Green Cities campaign by calling on your local leaders to join this effort to strengthen communities and invest in our planet.
Through these efforts combined, it is possible for the United States to not only meet its commitments to the Paris Agreement but also surpass them. Achieving this feat as a leading nation on the world stage will send a strong signal to the international community for other countries to meet their Paris goals as well, leading to a significant drop in the price of renewable energy and subsequently reducing carbon emissions worldwide.
This November, the midterm election will decide whether this momentum carries us on to a strong sustainable future, or dies out in legislative gridlock. While the IRA represents a significant step forward for global sustainability, it only passed through Congress by a razor-thin margin that required cutting nearly 60% of the environmental action included in the original plan for federal climate policy.
It has never been more urgent to Vote Earth.
To ensure that further climate action can be taken, we need leaders that will represent the public’s need for healthy environments and a stable climate. Electing these leaders is the greatest impact you can make as an individual to restore our Earth. Use our streamlined tools to quickly and easily register to vote, confirm/update your existing registration, learn about your voting rights, and make a plan to make it to the polls.