The Inflation Reduction Act has been a source of much discussion ever since President Biden signed it into law.
But whether our feelings about this partisan bill are positive or negative, the money has been allocated, and we should make sure that money works for Pennsylvania.
The act combines programs, fees, and tax credits to increase the speed at which the U.S. adopts clean energy including solar, wind, nuclear, and hydrogen. It will give Americans rebates covering 50% to 100% of the cost of installing new, energy-saving home electric appliances, such as heat pumps, water heaters, clothes dryers, stoves, and ovens, as well as a 30% rooftop solar tax credit to lower utility bills.
The act contains a huge investment in low-carbon technologies and is expected to help reduce greenhouse gas emissions 40% below 2005 levels by 2030, reducing the air pollution that sickens millions of Americans and adds up to billions of dollars in public health costs.
Even without the rebates and credits, American households are expected to save $170 to $220 per year by 2030 thanks to lower electricity costs. The funding for clean domestic energy will also decrease the burden on American taxpayers to subsidize fossil fuel costs or the deployment of our military to protect global trade routes around foreign oil production.
Pennsylvania’s 52,700 farmers and ranchers, who are vital to implementing important climate solutions but often can’t afford to pay for investments out of pocket, will be able to get money for conservation. The cash will finance projects to help store carbon in soil and trees, reduce methane, and switch to sustainable fertilizer and crop rotation methods. Meanwhile, foresters will benefit from funds for forest health and resilience as well as incentives to maximize the amount of carbon dioxide removed from the air.
Here in Pennsylvania, in 2021, there were already 92,773 Pennsylvania workers employed in clean energy jobs. The bill will spur increased development of such jobs, with the added incentive of bonuses to employers who pay the prevailing wage. Those jobs will therefore be good, family-supporting jobs.
The transition to clean power will benefit conservative districts like ours around country — more than two-thirds of renewable capacity can be found in rural districts which are ideologically more conservative.
Pennsylvania is home to 1.1 million small businesses, representing 99.6% of all businesses in the state, and the Inflation Reduction Act will help them save money. Small businesses will be benefited by the $5 per square foot tax credit to support energy efficiency improvements that deliver lower utility bills, as well as credits covering 30% of the costs of installing low-cost solar power and of purchasing clean trucks and vans for commercial fleets.
In Pennsylvania, we’re already feeling the impact of an altered climate. Our area is in the grip of a drought this summer that has affected our crops and forests. We must embrace solutions that are good for people and the economy while ensuring we slow the emissions warming our world and causing costly extreme weather events.
The Inflation Reduction Act was passed to clean up the air at home, but we still need to fix the problems it does not address — specifically, while we reduce pollution in the U.S., other countries continue to release heat-trapping gasses into the air which warms the planet for all of us.
One way to increase responsibility elsewhere is to impose a fee on imported products from nations that release more pollution in their manufacturing process. The E.U. is rapidly moving forward with a carbon border adjustment mechanism (CBAM), which will force countries trading with it to produce products with a lower carbon footprint or pay a fee. We too can level the playing field by placing a CBAM on foreign manufacturers undercutting our U.S. businesses with their cheaper, higher carbon-intensive goods.
Now it falls to Republicans to hold other countries accountable. As the new Congress approaches, we urge our representative and senators to support federal policy that does just that.
With the Inflation Reduction Act now the law of the land, it’s essential for our communities in Pennsylvania to secure the full benefits available. We can also send a firm message to high-polluting countries — if you don’t follow our lead, you’ll pay to do business.
Drew Eyerly, who grew up in Huntingdon, Pa., is conservative outreach director of Citizens’ Climate Lobby.
