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Presentation Slides: cclusa.org/inflation-reduction-act-slides

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Presentation Slides: �cclusa.org/inflation-�reduction-act-slides

Dana Nuccitelli

E-mail: dana.nuccitelli@citizensclimate.org

@dana1981

August 04, 2022

The Climate Benefits in the

Brett: Welcome to Citizens’ Climate University, a weekly webinar program of Citizens’ Climate Lobby that provides CCL supporters with access to in-depth training opportunities on topics relating to climate change and effective climate advocacy.

I’m your host Brett Cease and tonight’s topic is

The Climate Benefits in the Inflation Reduction Act

Join CCL Research Coordinator Dana Nuccitelli for a training on the Climate Benefits in the Inflation Reduction Act. Dana will discuss all the energy and climate items in the bill, how much it will reduce US greenhouse gas emissions, and the health benefits of the cleaner air that will result from the bill's provisions. We'll also be sure to review where things stand as of Thursday evening and how you and your community can take action to help ensure its passage. 🎉

�

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Who is this Guy?

B.A. in Astrophysics from UC Berkeley, 2003
M.S. in Physics from UC Davis, 2005
Environmental Scientist
Climate journalist for SkepticalScience.com (since 2010), �The Guardian (2013–2018), Yale Climate Connections �(since October 2018)
NCSE 2016 Friends of the Earth award winner
Author of 10 peer-reviewed climate science papers
Author of Climatology versus Pseudoscience

Dana Nuccitelli�Research Coordinator for Citizens’ Climate Lobby

Dana Nuccitelli is an environmental scientist and climate journalist with a Master’s Degree in physics. He has written about climate change since 2010 for Skeptical Science, for The Guardian from 2013 to 2018, and since 2018 for Yale Climate Connections. In 2015 he published the book ‘Climatology versus Pseudoscience’, and he has also authored ten peer-reviewed climate studies, including a 2013 paper that found a 97% consensus among peer-reviewed climate science research that humans are the primary cause of global warming.

Dana joined CCL’s staff in 2021 after 9 years as a volunteer with its Sacramento chapter. During that time he gave dozens of presentations all around California about climate change impacts like wildfires and droughts, and policy solutions like carbon fee and dividend. Dana has also led CCL’s Science Policy Team since 2017.

In his free time, Dana enjoys playing tennis and spending time with his dogs.

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Our Agenda

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What’s In the Bill On Climate?

How Much Will It Cut Emissions?

How Many Lives Will It Save?

What Doesn’t It Accomplish?

Taking Action and Q&A

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Background & Catching Up

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We Have a Climate Bill!

The Inflation Reduction Act (IRA) of 2022

Moody’s Analytics says IRA will “nudge the economy and inflation in the right direction, while meaningfully addressing climate change and reducing the government’s budget deficits.”

Center for a Responsible Federal Budget (CRFB): “we expect the IRA to very modestly reduce inflationary pressures in the near term while lowering the risk of persistent inflation over time.”

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What’s in the Bill on Climate? Tons!

~$385 billion – by far the largest-ever federal climate package
$15 billion in EV tax credits: $7,500 for new, $4,000 for used

Max individual income: $150k for new, $75k for used
Max EV price: $80k for new SUVs/pickups/vans, $55k for new cars, $25k for used
50–100% of battery components & minerals must be from US or free trade partner

~$150 billion in clean electricity production & investment tax credits

Very important! Renewable energy deployment had been stalling a bit

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A Fee (Charge) on Methane Pollution!

The first ever federal fee (charge) on climate pollution

2024: $900/ton ($36/ton CO₂ equivalent)
2025: $1200/ton ($48/ton CO₂e)
2026 and thereafter: $1500/ton ($60/ton CO₂e)

60% of methane leaks fixed for $5/ton, 75% for $40/ton CO₂e
Projected to raise $8 billion in revenue, boost the economy, create jobs
Provides $1.5B for methane reductions, monitoring, reporting
Facilities are exempt if in compliance with EPA methane regulations

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Natural Climate Solutions!

$5B for forestry programs

$2B for wildfire prevention
$1.5B for urban and community forestry grants
$1B for forest conservation
$450M for climate-smart private forest management incentives
$100M for wood innovation grants

$21B for climate-smart agriculture and conservation including agroforestry, silvopasture, cover cropping

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Electrification, Green Bank, EJ

$40 billion in consumer home energy rebate programs, including rebates & tax incentives for heat pump water and space heaters, clothes dryers, electric stoves, insulation, windows, wiring
$200 million to train contractors in electrification & efficiency
$3 billion for the Post Office to buy more EVs
$27 billion for a green tech accelerator (national green bank)
$60 billion in EJ priorities to invest in disadvantaged communities

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Rebates for Americans

100% of costs covered included installation up to $14,000 for low-income households (<80% area median income), 50% covered for moderate-income (80–150% area median income). Rebates include:

Heat pump space heaters ($8,000), water heaters ($1,750), dryers ($840)
Electric stoves ($840)
Better home insulation and windows ($1,600)
Home wiring ($2,500) and breaker box ($4,000) upgrades

Other relevant rebates and funding in the Inflation Reduction Act:

Electric vehicles (up to $7,500 for new and $4,000 for used)
Rooftop solar panels and home battery storage (30% tax credit)
$200 million to train contractors in electrification & efficiency

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Rewiring America Savings Calculator

https://www.rewiringamerica.org/app/ira-calculator

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Domestic Manufacturing, Innovation

~$60 billion for domestic clean energy manufacturing

$40B tax credits for US solar, wind, batteries, EVs, and critical minerals
Up to $20B in loans to build EV manufacturing facilities
$2B to retool car plants to make EVs
$2B to National Labs to accelerate breakthrough energy research
$500 million for the Defense Production Act

$250 billion in loan authority to the Department of Energy for lending to new green companies/technologies

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…and Lots more!

45Q tax credit for carbon sequestration ($3B)

$85/ton for stored CO₂, $60/ton for use in enhanced oil recovery

Production tax credit for nuclear power ($30B)
Extended tax credits for biodiesel fuel ($5.6B)
Tax credit for aviation biofuel reducing emissions by at least 50% ($50M)
New tax credit for clean (low-CO₂) hydrogen ($13B)
Permanent coal tax extension to fund Black Lung Disability Trust Fund (+$1B)
Requires 2 million onshore & 60 million offshore acre acres offered for lease per year as a prerequisite for similar solar & wind leases

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How Much Will it Cut Emissions?

Where we started: 6.6 gigatons (Gt) of CO₂ emissions in 2005
Where we’re heading: 3.3 Gt emissions target in 2030 (50% cut)
Where we’re at: 5.6 Gt in 2021 (17% below 2005)

1 Gt down, 2.3 Gt to go … with 8 years left

Based on current policies: headed for ~27% cuts by 2030

That’s about 4.9 Gt CO₂ in 2030; almost halfway short of our Paris target!
Wide range of uncertainty: 22–35% below 2005 by 2030

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Paris

Target

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Paris

Target

Business as Usual

4.9 Gt

27% cut

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Paris

Target

Business as Usual

Inflation Reduction Act

4.9 Gt

27% cut

4 Gt

40% cut

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Rough Emissions Cuts Breakdown

900 million fewer tons of CO₂-equivalent per year in 2030:

~300 Mt (33%) cut from clean energy tax credits
~220 Mt (25%) from electric vehicle tax credits & incentives
~140 Mt (15%) cut from methane regulations and fee
~100 Mt (11%) from industrial carbon capture
~100 Mt (11%) cut from natural climate solutions
~40 Mt (5%) cut from building electrification & efficiency

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How Many Lives will it Save?

Based on research led by Drew Shindell, benefits 2023–2030:

~180,000 premature deaths from air pollution avoided

Valued by Americans at about $1.9 trillion

10 million fewer lost workdays due to air pollution worth $2 billion
60,000 fewer incidences of dementia
Increase wheat production by 75 million bushels worth $440 million
Increase corn production by 250 million bushels worth $1 billion
Increase soybean production by 250 million bushels worth $2.7 billion

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What about the Oil & Gas Leases?

What we consider irresponsible rhetoric on this issue:

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What about the Oil & Gas Leases?

Numerical analyses of the oil & gas lease impacts:

NRDC: “the emissions cuts from the legislation would be as much as 10 times greater than the effects from the support it extends to fossil fuels.”
Energy Innovation: “for every ton of emissions increases generated by IRA oil and gas provisions, at least 24 tons of emissions are avoided by the other provisions.” Less than 50 Mt of CO₂ added by leases.
Princeton REPEAT: Less than 50 Mt of CO₂ “which would be within rounding error”

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What Doesn’t the Bill Accomplish?

Leaves us ~10% (~700 Mt CO₂) shy of our 2030 Paris commitment

We still have time to make up that gap with additional policies

A methane fee, but no carbon fee
A long way to go to reach net zero emissions by 2050
No resolution on carbon border adjustments

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Go to cclusa.org/action

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Thank You!

Dana Nuccitelli | Brett Cease

E-mail: dana.nuccitelli@citizensclimate.org� brett@citizensclimate.org

@dana1981 @brettcease

Questions? Join us in Nerd Corner: � cclusa.org/nerd-corner

www.citizensclimatelobby.org