U.S. Climate Action - Better Late than Never

Reason For Hope

Australia is close to passing a legally binding climate framework

Climate legislation has passed the House and is now headed for the Senate

Framework will put Australia on path to achieve 43% cut in emissions by 2030

Sources

Climate Change Legislation In Australia Passes Lower House (carbonherald.com)

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Inflation Reduction Act

Projected Impact

According to middle of the road modeled scenario - expected to cut emissions by 40% by 2030

U.S. has pledged to cut emissions 50-52% by 2030 so a gap still remains

Two biggest sources of U.S. emissions are electricity sector 25% and transportation 27%

Emission reductions by category

• Electricity sector ~75%
• Carbon removal ~ 12%
• Industry ~10%
• Transportation ~3%

Majority of cuts achieved via tax credits

‍Effect on Consumers

Better air quality - could avoid up to 3900 premature deaths and 100,000 asthma attacks annually

EV tax credits

• $7500 off new EVs - no longer manufacturer limit, $55K cap on cars, $88K cap on SUVs/trucks, must make under $150K as individual or $300K for joint filers
• Alliance for Automotive Innovation believes 70% of EVs sold today in U.S. won't qualify because of domestic manufacturing requirements
• $4000 off used EVs - must be at least two years old and purchase price under $25K

Clean energy tax credits

• 30% off solar, wind, geothermal, biomass and now energy storage t
• Extended through 2034

Energy efficiency tax credits and rebates

• Up to $2000 / year in tax credits available to cover costs of installing home efficiency upgrades
• Creates two new rebate programs for homeowners as well
• Programs cover insulation, efficient doors / windows, water heaters, heat pumps, related appliances, etc.
• Rebates are limited to people earning 150% or less of median income in a given area
• Incentives increase as income decreases - up to $8000 in rebates for low-income households

‍Fossil Fuel Concessions

More fossil fuel leases on Federal land (onshore and offshore)

Increased emissions from leases projected to be offset 24:1 by emission reductions in bill

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Sources

Inventory of U.S. Greenhouse Gas Emissions and Sinks | US EPA

How to qualify for Inflation Reduction Act climate tax breaks, rebates (cnbc.com)

Experts: Senate-passed bill will yield myriad climate benefits » Yale Climate Connections

Modeling the infrastructure bills Using the Energy Policy Simulator (energyinnovation.org)

A Turning Point for US Climate Progress: Assessing the Climate and Clean Energy Provisions in the Inflation Reduction Act | Rhodium Group (rhg.com)