What’s Happening:
Today, President Biden signed the Inflation Reduction Act (IRA) into law, after the bill passed on party-line votes in both the House and the Senate. The bill’s $369 billion in climate and energy provisions make it the largest climate investment in U.S. history.
Why It Matters
Two-thirds of Americans are concerned about climate change and want to see greater action on the issue. While this bill addresses some of those key concerns, it also contains other progressive priorities.
The Inflation Reduction Act invests in a host of clean energy technologies that will help us reduce emissions. Experts believe it will more than triple clean energy production and set the U.S. on track to reduce its greenhouse gas emissions 31 percent to 44 percent below 2005 levels by 2030.
That being said, the legislation also includes other provisions, including healthcare and tax measures that are deeply unpopular with conservatives.
My Take
The investments the IRA makes in clean energy innovation are undoubtedly a big win for our planet.
Importantly, while progressive priorities — including new electric vehicle tax credits and tens of billions of dollars for environmental justice initiatives — are in the bill, it also contains provisions that are vital for ensuring the United States’ energy security, such as expediting offshore oil and gas lease sales, supporting the expansion of nuclear energy and promoting domestic mining of critical minerals.
Unfortunately, Democrats ignored Republican concerns about the IRA, specifically that it would raise taxes and exacerbate inflation amid worsening economic conditions.. Instead, they chose to force climate legislation through on a purely partisan basis despite the fact that Republicans are more willing than ever to engage on climate.
Another important issue is that, while the bill will deliver large emissions reductions in the U.S., it will not significantly curb global emissions. Earlier this year, China and India announced that they will increase coal production by a combined 700 million tons. This alone will increase global emissions by the same amount that the U.S. decreased its emissions between 2005 and 2020.
A final concern is the matter of permitting. Investing money in clean energy projects is one thing, while actually building them is another. Paradoxically, environmental regulations, such as the National Environmental Policy Act (NEPA), have proved to be one of greatest barriers blocking a clean energy transition. Fortunately, Senator Manchin struck a deal with Senate Majority Leader Chuck Schumer to address permitting reform in subsequent legislation. Without ambitious permitting reform, the Inflation Reduction Act’s ambitious climate goals will remain just that — goals.
Quote Me On It
“The climate portions of the Inflation Reduction Act will strengthen America’s clean energy industry, but soon enough, Democrats will realize the cost of partisan climate action. Hopefully, as they continue the fight against climate change in the future, they will work with their Republican counterparts on actionable, pragmatic policy.” – VP of Government Affairs Quill Robinson