My second day at COP27 kicked off on a high note with a diligent overview of the Inflation Reduction Act (IRA) from Secretary Jennifer Granholm of the Department of Energy. On the one-year anniversary of the signing of the Bipartisan Infrastructure Bill, Secretary Granholm described a hopeful and just energy transition fueled by the IRA’s numerous tax credits and residential energy savings. Secretary Granholm also emphasized the Biden Administration’s commitment to centering Justice40, a federal environmental justice initiative. Justice40 and the IRA have huge potential to increase renewable energy projects in vulnerable and low-income communities that are disproportionately impacted by climate injustices.
Secretary Granholm also stated that in the evaluation process of concept papers, descriptions of environmental project ideas such as solar installation, the Department of Energy focuses 20% of its project evaluation criteria on the project’s ability to directly benefit the community and how the organization has formed community connections. This helps ensure that IRA-funded projects are those that can most effectively benefit communities who suffer from fossil fuel pollution and need a swift transition to clean and resilient renewables.
The private sector can also help. Secretary Granholm made it clear that the private sector has a strong role to play in utilizing the benefits of the Inflation Reduction Act, as they can accelerate the just energy transition.
Two main benefits of the IRA, highlighted by Secretary Granholm, were the ability of tax credits to accelerate the deployment of renewable technologies and the impact of reducing residential energy costs, including reduced utility charges and demand while lowering the cost of appliances such as heat pumps.
However, it’s clear that there are some looming challenges that can hinder the efficacy of the IRA, slowing down the ability for renewable technologies to be deployed. Two implementation challenges identified by Secretary Granholm were workforce challenges and supply chain issues. However, she did say that over 75% of the jobs created under the Inflation Reduction Act will not require a four-year degree, opening the door to more opportunities for professionals of all backgrounds and demographics.
Today, Secretary Granholm provided some incredible insight into the intricacies of the Inflation Reduction Act, and I am confident in the IRA’s ability to increase residential access to renewable energy, especially solar power. However, the IRA isn’t the only piece of legislation or work I want to see coming from the Department of Energy. As the meeting concluded, hints of additional environmental projects were cast out and I can’t wait to see what environmental initiatives come next!