User:Stepham454/Inflation Reduction Act of 2022

Energy and Environment

The United States has passed numerous environmental laws, such as, National Environmental Protection Act, Endangered Species Act, Clean Air Act, and Safe Drinking Water Act. The majority of these laws were passed during the Environmental Decade (Between 1969 and 1980). The Inflation Reduction Act is a historic law, as it is the most ambitious Environmental Law fighting against Climate Change. Since the Environmental Decade, almost 4 decades later the United States has fallen behind in Climate Legislation. The Inflation Reduction Act will invest $369 billion dollars in Energy Security and Climate Change. The funds are split into 5 different aspects to ensure that the U.S. reaches the predicted 40% emission reduction by 2030.

The first one is to lower the consumer energy costs by using $9 billion in home energy rebate programs. Such as, tax credits to make homes run on clean energy and for consumers to purchase clean vehicles. This in turn will save an average of $500 for every family as they choose to switch to clean energy. Secondly, money will be invested in energy security and creating more domestic producers. $30 billion in tax credits to accelerate U.S. manufacturing of clean energy products, such as, solar panels. $10 billion in tax credit for the creation of clean technology manufactures. Thirdly, decarbonization of the economy this in turn means to give tax credits and and grants to companies to transition to clean energy. The fourth aspect is to allocate money to communities and Environmental Justice, in the form of grants. Such as, the Environmental and Climate Justice Block Grant, funded at $3 million, to invest in disadvantaged communities that are disproportionally effected by public health harms due to pollution and climate change. Lastly, funds for rural communities and forestland, $20 billion to invest in climate-smart agriculture and $2.6 billion to protect and restore coastal habitats.

An assessment by the Rhodium Group, an independent research provider, estimated it would reduce national greenhouse gas emissions 32–42% below 2005 levels by 2030, compared to 24–35% under current policy while reducing household energy costs and improving energy security. Furthermore, Rhodium Group projects that the nuclear provisions in the bill are likely to "keep much, if not all" of the nation's nuclear reactors that are at risk of retiring, estimated to be 22–38% of the fleet, online through the 2030s.

A preliminary analysis by the REPEAT Project of Princeton University estimated that the investments made by the law would reduce net emissions 42% below 2005 levels, compared to 27% under current policies (including the Bipartisan Infrastructure Law).

According to the findings by the nonpartisan Energy Innovation group's model, the bill is estimated to enable the reduction of greenhouse gas emissions by 37–41% below 2005 levels in 2030, compared to 24% without the bill. This estimate of the greenhouse gas emission reduction lines up with the figure provided by the bill's authors which is a 40% reduction in carbon emissions relative to 2005 levels.

Modeling from the nonpartisan research institution Resources for the Future showed the bill would decrease retail power costs by 5.2–6.7 percent over a ten-year period, resulting in savings of $170–220 per year for the average U.S. household. The modeling also indicated that the bill would result in decreased electricity price volatility.

The bill creates an incentive for companies to produce and switch to clean energy and technology. The more quantity of these products, such as, clean vehicles, will lower the price and make it more affordable for consumers to purchase. In turn, the U.S. will have increased the amount of clean energy being used across the country. Lowering their emissions to meet the 40%.