inflation reduction act
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Biden's green energy policies are expected to save lives and grow jobs, reports show
New reports suggest that President Biden's climate policies will save 200,000 lives by reducing pollution and have already added nearly 150,000 clean energy jobs in the U.S.
In short:
- Biden’s Inflation Reduction Act has led to 150,000 new clean energy jobs, with 3.5 million now working in the sector.
- Clean energy jobs grew 4.5% last year, outpacing U.S. employment growth, especially in energy efficiency, renewables, and electric vehicles.
- Trump's campaign promises to end clean energy incentives if elected, aiming to deregulate the energy sector.
Key quote:
"The biggest threats to this unprecedented progress are misguided efforts to repeal or roll back parts of the IRA."
— Bob O'Keefe, executive director of E2.
Why this matters:
Reducing pollution saves lives and improves public health. Clean energy job growth boosts the economy but faces potential reversal if Trump wins, risking pollution increases and economic setbacks in this sector.
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Biden's climate law may boost oil production through enhanced recovery
Oil companies could use tax credits from the Inflation Reduction Act to extract more crude from existing wells through enhanced oil recovery, which injects CO2 underground to dislodge oil.
In short:
- The Inflation Reduction Act boosts tax credits for storing CO2, incentivizing its use for oil recovery.
- Critics argue weak oversight allows companies to claim tax benefits without effectively storing CO2.
- Environmentalists say enhanced oil recovery (EOR) undermines climate goals by encouraging fossil fuel production.
Key quote:
“There’s a lot of money from the [Inflation Reduction Act], and a lot of concerns that taxpayer money is going out the door to industry that hasn’t proven EOR to be an efficient climate solution.”
— Autumn Hanna, vice president of Taxpayers for Common Sense
Why this matters:
EOR could help oil companies extend well production while claiming climate-friendly tax credits. Without better oversight, it’s unclear whether this will actually reduce carbon emissions.
Related: Biden faces challenges in curbing US oil production
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Republicans clash over keeping green subsidies from 2022 climate law
Republicans are divided on whether to keep the Inflation Reduction Act’s green energy tax credits, with growing support within the party to preserve these incentives despite opposition from conservatives.
In short:
- 18 House Republicans signed a letter asking Speaker Mike Johnson to keep energy tax credits from the Inflation Reduction Act.
- Some Republicans argue that the subsidies benefit their districts and support economic development, while others see them as wasteful spending.
- GOP leaders face pressure to decide on the future of these credits, particularly if they win the 2024 elections.
Key quote:
“We’ve seen industries that were against the Inflation Reduction Act now lobbying to keep the tax credits."
— John Podesta, White House climate adviser
Why this matters:
This debate highlights internal GOP conflicts over climate policy and the political balancing act between economic benefits and ideological opposition to government spending. The outcome may significantly impact the future of U.S. climate initiatives.
Related EHN coverage:
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Credit: Dzmitry Dzemidovich/Big Stock Photo
Red states reap most benefits from climate law they oppose
A majority of the Inflation Reduction Act’s clean energy jobs and investments have flowed to Republican states, despite their lawmakers’ opposition.
In short:
- The Inflation Reduction Act has led to more than 330 clean energy projects, generating 109,278 jobs and $126 billion in investments, mostly in GOP districts.
- Conservative states like Georgia and North Carolina have seen significant economic boosts, yet their representatives remain critical of the climate law.
- Some Republicans are reconsidering their opposition, fearing repeal could hurt their states' economies.
Key quote:
“This is what I truly believe is the biggest economic revolution that this country has seen in generations, and it’s because we finally, finally, finally in this country decided to do something about climate change and clean energy.”
— Bob Keefe, executive director of E2
Why this matters:
The IRA is reshaping the U.S. economy, particularly in conservative regions, but political resistance to the law could jeopardize these gains, affecting both the environment and jobs.
Related: Opinion: House Speaker Mike Johnson’s climate change playbook — deny the science, take the funding
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Credit: Wenhan Cheng/Pixabay
Republicans struggle to reconcile climate law with party’s energy goals
As Republican leaders prepare for a potential "red wave" in November, they face growing tensions between opposing the Inflation Reduction Act and supporting tax credits for clean energy that benefit their communities.
In short:
- Republican lawmakers are divided over whether to repeal or preserve parts of the Democrats' 2022 climate law.
- A group of 18 House Republicans urged leadership to keep clean energy tax credits, highlighting local economic benefits.
- Conservative voices within the party criticize these Republicans, citing hypocrisy for now defending the law they previously opposed.
Key quote:
“In April 2023, every GOP Rep. that signed this letter voted to REPEAL the IRA’s ‘climate’ subsidies. Now, [they] want to preserve so-called ‘green’ handouts to Democrats’ corporate cronies.”
— Texas Representative Chip Roy
Why this matters:
The Republican Party's internal conflict on climate policy reflects broader tensions between economic benefits and ideological opposition to climate science. This debate could shape future U.S. energy policy, especially if Republicans gain control of Congress.
Related EHN coverage:
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Data shows the Inflation Reduction Act boosts US jobs instead of sending them to China
JD Vance's claim that the Inflation Reduction Act sends jobs to China contradicts evidence that it boosts American green manufacturing jobs.
In short:
- JD Vance, GOP vice-presidential candidate, wrongly claims the Inflation Reduction Act shifts U.S. jobs to China by pushing electric vehicle (EV) manufacturing offshore.
- Contrary to the candidate's claims, the 2022 law includes measures to boost U.S. green jobs, such as tax credits for EVs made in North America and tariffs on Chinese EVs, to counter China’s dominance in the EV market.
- Reports show the Act has led to significant investments in clean energy projects across the U.S., creating hundreds of thousands of jobs.
Key quote:
"Energy tax credits have spurred innovation, incentivized investment, and created good jobs in many parts of the country — including many districts represented by members of our conference."
— 18 House Republicans in a letter to House Speaker Mike Johnson (R-La.)
Why this matters:
The Inflation Reduction Act aims to reduce U.S. reliance on Chinese manufacturing and strengthen domestic green energy production. Vance's statements could mislead voters about the Act's impact on U.S. jobs and economic growth.
Be sure to read: Trump selects climate skeptic J.D. Vance as running mate
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Credit: Divya777/Big Stock Photo
Biden's clean energy agenda tests support in Pennsylvania's swing region
A new clean energy hub near Pittsburgh, fueled by the Inflation Reduction Act, tests if climate policies can boost Kamala Harris's presidential campaign against Trump.
In short:
- Eos Energy Enterprises is revitalizing a factory in Turtle Creek, Pennsylvania, producing long-duration zinc-halide batteries, supported by Biden's climate law offering $369 billion in clean energy tax incentives.
- Western Pennsylvania's emerging clean energy sector, including Eos, is crucial for Harris's campaign as the area balances traditional natural gas interests with new renewable energy jobs.
- The Democratic climate agenda faces challenges, with local unions backing a controversial methane-to-hydrogen project, sparking debates over job creation and environmental impact.
Key quote:
“Hopefully, stuff like this signals the return of American manufacturing as we know it.”
— Chris Dellinger, an Eos executive who oversees the company’s manufacturing operations
Why this matters:
Climate policy success in Pennsylvania, a pivotal swing state, could significantly influence the outcome of the presidential election. Harris's ability to unite clean energy initiatives with local economic needs will be vital in securing voter support.
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