Tracking the $370B Inflation Reduction Act
TL/DR –
The Inflation Reduction Act allocated $370 billion for clean energy and climate-related programs, representing the largest investment in these areas. Federal agencies have been disbursing these funds to various stakeholders, including individuals for energy-efficient home improvements, and companies for large-scale manufacturing facilities and renewable energy projects. Several groups and agencies, including the US Department of Energy and the US Department of Agriculture, have been tracking the disbursement of these funds, which have been used to support projects such as the reinvestment in old energy infrastructure, renewable energy, and energy efficiency improvements.
The Inflation Reduction Act, signed by President Joe Biden on Aug. 16, 2022, allocated $370 billion for clean energy and climate-related programs – the largest investment of its kind. Concerning the distribution of these funds, it ranges from energy efficiency home improvements and residential clean energy tax credits for taxpayers, to large scale renewable energy projects for companies.
Tracking the appropriated funds is challenging due to the continuous changes in the numbers as the responsible agencies grant awards, loans & tax credits. However, assistance comes from public policy groups and federal agencies who regularly update the status of remaining funds.
The U.S. Department of Energy’s Loan Programs Office (LPO) issues monthly reports on available loan and loan guarantee authority across its programs. This includes the Title 17 Energy Infrastructure Reinvestment (EIR) program, created by the IRA, to provide loan guarantees for projects that reinvest in old energy infrastructure for emission reduction and clean energy development. The EIR program had about $244.8 billion in estimated loan authority available as of Oct. 31, 2024, according to the LPO.
Furthermore, the U.S. Department of Agriculture (USDA) invested more than $2.7 billion through its Rural Energy for America Program (REAP) for over 9,900 renewable energy and energy efficiency improvements.
Online resources such as Atlas Public Policy’s Climate Program Portal, the Rhodium Group’s Clean Investment Monitor, and the Inflation Reduction Act Tracker have been useful in tracking federal investments in climate initiatives.
However, the challenge lies in obtaining accurate and current information, as data becomes outdated quickly with the approval of awards and loan guarantees.
According to Joe Brazauskas, senior counsel for Bracewell, it’s hard to determine how much IRA money is left. He pointed out that funds have been distributed by agencies like the Environmental Protection Agency and the Department of Energy, leaving sizable pots of money for the next administration to examine.
The upcoming administration may consider repurposing unobligated dollars, with possibilities of continuing programs focused on carbon capture and sequestration, Brazauskas elaborated. However, he added that there would be increased scrutiny on these programs and their future utilization.
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