Yesterday as expected, President Biden signed into law H.R. 5376, The Inflation Reduction Act of 2022 which contains substantial provisions for battling climate change. According to the White House briefing, the new law includes the following:
Lowering Energy Costs
- Families that take advantage of clean energy and electric vehicle tax credits will save more than $1,000 per year.
- $14,000 in direct consumer rebates for families to buy heat pumps or other energy efficient home appliances, saving families at least $350 per year.
- 7.5 million more families will be able install solar on their roofs with a 30%tax credit, saving families $9,000 over the life of the system or at least $300 per year.
- Up to $7,500 in tax credits for new electric vehicles and $4,000 for used electric vehicles, helping families save $950 per year.
- Putting America on track to meet President Biden’s climate goals, which will save every family an average of $500 per year on their energy costs.
Building a Clean Energy Economy
- Power homes, businesses, and communities with much more clean energy by 2030, including:
- 950 million solar panels
- 120,000 wind turbines
- 2,300 grid-scale battery plants
- Advance cost-saving clean energy projects at rural electric cooperatives serving 42 million people.
- Strengthen climate resilience and protect nearly 2 million acres of national forests.
- Creating millions of good-paying jobs making clean energy in America.
Reducing Harmful Pollution
- Reduce greenhouse gas emissions by about 1 gigaton in 2030, or a billion metric tons – 10 times more climate impact than any other single piece of legislation ever enacted.
- Deploy clean energy and reduce particle pollution from fossil fuels to avoid up to 3,900 premature deaths and up to 100,000 asthma attacks annually by 2030.
Enactment of the legislation gives new impetus to the SEC for issuing a final release of their climate proposal, and may also head off some potential legal challenges to the final rule when issued. Luckily, we just announced an additional panel at the 1st Annual Practical ESG Conference that will discuss the nexus between this new law and the future of the SEC proposal.
Implementation of the law will require significant other rulemaking and there may be further legal challenges ahead as well. We are tracking developments as they come. PracticalESG.com members can find a growing compendium of analyses and summaries in a new subject area for the law here.