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The Inflation Reduction Act Turns One
The flagship climate legislation from the Biden-Harris Administration, the Inflation Reduction Act, celebrated its first birthday on August 16th with a party at the White House. President Biden, Democratic lawmakers, and climate activists spoke from the White House to continue to champion the massive investment package, highlighting the jobs created by the legislation and the massive amount of funding that has already gone out the door. A recent report found that 38 states are planning at least one major clean energy project funded with IRA money, and a U.S. Treasury analysis shows that the IRA derived clean energy investments are disproportionately benefiting economically disadvantaged communities.
Solar Capacity in Southeastern U.S. to Double by 2026
As supply chains improve and federal funding reaches end users, solar energy production is expected to double in the Southeastern U.S. over the next three years according to a new report from the Southern Alliance for Clean Energy (SACE). Florida leads the region today and is expected to continue to build utility-scale solar, ultimately achieving over 17,000 MW by 2026 – close to the same amount the entire Southeastern U.S. produces today. Florida’s consistent and sizable investment in solar is helped along by the Inflation Reduction Act and the suspension of tariffs on imports from certain Southeast Asian countries.
Department of Energy Launches Carbon Capture Program
The U.S. Department of Energy (DOE) is initiating a competition for $1.2 billion to be used for carbon removal projects. The funds are specifically targeted at creating four direct air capture (DAC) hubs, two of which must be located in economically distressed communities. The $1.2 billion is the first tranche of a $3.5 billion investment provided by the Infrastructure Investment and Jobs Act. There are at least 13 projects that have applied for the funding, a sizeable applicant pool considering there are only 27 commissioned CO2 removal plants worldwide. Complementing the $3.5 billion funding opportunity is a tax incentive increased by the Inflation Reduction Act, raising the return for DAC operators to $180 per ton of CO2 that they permanently store.
(source: [email protected])
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