Summary of the Energy Security and Climate Change
Investments in the Inflation Reduction Act of 2022
Both high energy costs, and the growing impacts of climate change, pose a significant
burden to every American. The historic investments included in the Inflation Reduction
Act of 2022 will bring down consumer energy costs, increase American energy security,
while substantially reducing greenhouse gas emissions.
The combined investments in the FY2022 Budget Reconciliation bill would
put the U.S. on a path to roughly 40% emissions reduction by 2030, and would
represent the single biggest climate investment in U.S. history, by far.
The Inflation Reduction Act:
1. Lowers energy costs for Americans through policies that will lower prices atthe pump and on electricity bills, help consumers afford technologies that will
lower emissions and energy prices, and reduce costs that would otherwise bepassed on to them.
2. Increases American energy security through policies to support energy
reliability and cleaner production coupled with historic investments in
American clean energy manufacturing to lessen our reliance on China, ensuringthat the transition to a clean economy creates millions of American
manufacturing jobs, and is powered by American-made clean technologies.
3. Invests in decarbonizing all sectors of the economy through targeted federal
support of innovative climate solutions.
4. Focuses investments into disadvantaged communities to ensure that
communities that are too-often left behind will share in the benefits of thetransition to a clean economy.
5. Supports resilient rural communities by investing in farmers and forestland
owners to be part of growing climate solutions, and by ensuring rural andcommunities are able to better adapt to a rapidly changing climate.

11. Lower Consumer Energy Costs
This bill will provide a range of incentives to consumers to relieve the high costs ofenergy and decrease utility bills. This includes direct consumer incentives to buy
energy efficient and electric appliances, clean vehicles, and rooftop-solar, and invest in
home energy efficiency, with a significant portion of the funding going to lowerincome households and disadvantaged communities.
 $9 billion in consumer home energy rebate programs, focused on lowincome consumers, to electrify home appliances and for energy efficient
retrofits.
 10 years of consumer tax credits to make homes energy efficient and run
on clean energy, making heat pumps, rooftop solar, electric HVAC and water
heaters more affordable.
 $4,000 consumer tax credit for lower/middle income individuals to buy usedclean vehicles, and up to $7,500 tax credit to buy new clean vehicles.
 $1 billion grant program to make affordable housing more energy efficient.
2. American Energy Security and Domestic Manufacturing
This bill will support energy reliability and cleaner energy production coupled withhistoric investments in American clean energy manufacturing. It includes over $60
billion to on-shore clean energy manufacturing in the U.S. across the full supply chainof clean energy and transportation technologies. These manufacturing incentives will
help alleviate inflation and reduce the risk of future price shocks by bringing down thecost of clean energy and clean vehicles and relieving supply chain bottlenecks.
 Production tax credits to accelerate U.S. manufacturing of solar panels, windturbines, batteries, and critical minerals processing, estimated to invest $30billion.
 $10 billion investment tax credit to build clean technology manufacturing
facilities, like facilities that make electric vehicles, wind turbines and solarpanels
 $500 million in the Defense Production Act for heat pumps and criticalminerals processing $2 billion in grants to retool existing auto manufacturing facilities tomanufacture clean vehicles, ensuring that auto manufacturing jobs stay in thecommunities that depend on them.

2 Up to $20 billion in loans to build new clean vehicle manufacturing facilities
across the country.
 $2 billion for National Labs to accelerate breakthrough energy research.
3. Decarbonize the Economy
The investments in this bill will reduce emissions in every sector of the economy,
substantially reducing emissions from electricity production, transportation, industrial
manufacturing, buildings, and agriculture.
 Tax credits for clean sources of electricity and energy storage and roughly $30
billion in targeted grant and loan programs for states and electric utilities toaccelerate the transition to clean electricity.
 Tax credits and grants for clean fuels and clean commercial vehicles to reduceemissions from all parts of the transportation sector.
 Grants and tax credits to reduce emissions from industrial manufacturing
processes, including almost $6 billion for a new Advanced Industrial Facilities
Deployment Program to reduce emissions from the largest industrial emitterslike chemical, steel and cement plants.
 Over $9 billion for Federal procurement of American-made clean technologies
to create a stable market for clean products, including $3 billion for the U.S.
Postal Service to purchase zero-emission vehicles.
 $27 billion clean energy technology accelerator to support deployment oftechnologies to reduce emissions, especially in disadvantaged communities.
 A Methane Emissions Reduction Program to reduce the leaks from theproduction and distribution of natural gas.
4. Invest in Communities and Environmental Justice
Building on regular engagement with EJ leaders from across the country, this package
includes over $60 billion in environmental justice priorities to drive investments into
disadvantaged communities. Some of the highlights include: The Environmental and Climate Justice Block Grants, funded at $3 billion,
invest in community led projects in disadvantaged communities andcommunity capacity building centers to address disproportionate
environmental and public health harms related to pollution and climate change.
 The Neighborhood Access and Equity Grants, funded at $3 billion, support
neighborhood equity, safety, and affordable transportation access with3

competitive grants to reconnect communities divided by existing infrastructurebarriers, mitigate negative impacts of transportation facilities or construction
projects on disadvantaged or underserved communities, and support equitabletransportation planning and community engagement activities.
 Grants to Reduce Air Pollution at Ports, funded at $3 billion, support thepurchase and installation of zero-emission equipment and technology at ports.
 $1 billion for clean heavy-duty vehicles, like school and transit buses andgarbage trucks.
 Some of the previously mentioned programs that focus on disadvantaged andlow-income communities are also important to environmental justice, like thetechnology accelerator and consumer home energy rebate programs. Inaddition, the many of the clean energy tax credits include either a bonus or
set-aside structure to drive investments and economic development indisadvantaged communities.
5. Farmers, Forestland Owners and Resilient Rural Communities
This bill will make historic investments to ensure that rural communities are at theforefront of climate solutions. The investments affirm the central role of agricultural
producers and forest landowners in our climate solutions by investing in climatesmart agriculture, forest restoration and land conservation. It also makes significant
investments in clean energy development in rural communities.
 More than $20 billion to support climate-smart agriculture practices.
 $5 billion in grants to support healthy, fire resilient forests, forest conservation
and urban tree planting.
 Tax credits and grants to support the domestic production of biofuels, and tobuild the infrastructure needed for sustainable aviation fuel and otherbiofuels.
 $2.6 billion in grants to conserve and restore coastal habitats and protect
communities that depend on those habitats.

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