Biden’s Inflation Reduction Act Will Be a Driving Force in Dealing with Global Climate Change

On his inauguration day, President Biden rejoined the Paris Agreement and indicated his intent to make the United States a world leader in dealing with climate change. Given the fact that historically the U.S. has been responsible for more than 22% of greenhouse gas emissions, it was past time to take firm action.
With the passage by Congress of the Inflation Reduction Act, which the President signed into law on August 16 of this year, our country has truly taken meaningful action to slow down or halt climate change. The provisions of the bill will result in the investment of $369 billion in climate solutions and environmental justice, and put our country on a path to a 40% emissions reduction by 2030. According to the president, the act could cut the social cost of climate change by up to $1.9 billion by 2050. Let’s take a closer look at what the provisions of the bill will do:
Accelerate a clean energy transition that will lower energy costs for Americans by:
- Expanding access to clean energy by extending clean energy tax credits by ten years
- Creating jobs and investing in our energy security, investing $60 billion in manufacturing solar panels, batteries, and other clean energy technologies in the U.S.
- Providing funding to low-income families to electrify their homes, including $9 billion in a home energy rebate program
- Removing barriers to community solar, making solar power more accessible and affordable for the average person
Provide funding to help the transportation sector transition away from fossil fuels by providing:
- $3 billion to the U.S. Postal Service to electrify its fleet
- $1 billion for clean school and transit buses, garbage trucks, and other heavy-duty vehicles, giving priority to communities dealing with excessive air pollution
- $3 billion to clean up air pollution at ports by installing zero emissions equipment, again with priority given to those portside communities that are breathing disproportionately high levels of toxic air pollution
- Tax credits for electric vehicles
Because communities of color face harm from pollution at a disproportionate level, the provisions of the bill are directed at helping these communities by:
- Reinstating the Superfund Tax so that industry, not the public, pays the bill for cleaning up the pollution it causes
- Providing $3 billion for community-led projects
- Providing $315.5 million for air monitoring so that communities are aware of what’s in the air they breathe
Deal with the impact of industrial agriculture on the climate by providing:
- Over $20 billion to help farmers and ranchers shift to sustainable practices with care taken to ensure that funds are not used to support false solutions, such as corn-based ethanol
- $300 million for research into the impact of agricultural practices on climate
Other provisions are directed at supporting those factors in nature itself that help to combat climate change by providing:
- $50 million to protect mature and old-growth forests
- $2.6 billion in coastal resilience grants
- $250 million to implement endangered species recovery plans and to address the impact of climate change on habitats
- $1 billion to ensure that federal agencies can carry out strong environmental reviews
The act will help individual citizens by providing:
- A 30% tax break for installing residential solar panels
- Up to $7,500 to purchase an electric vehicle
- Up to $14,000 for home energy efficiency upgrades, including up to $8,000 to install a heat pump
Further information:
“Summary of the Energy Security and Climate Change Investments in the Inflation Reduction Act of 2022,” U.S. Senate Democrats.
“The U.S. Finally Has a Law to Tackle Climate Change,” Rebecca Leber, Aug. 16, 2022, Vox.
A native of Wicomico County, George Shivers holds a doctorate from the University of Maryland and taught in the Foreign Language Dept. of Washington College for 38 years before retiring in 2007. He is also very interested in the history and culture of the Eastern Shore, African American history in particular.
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