The Inflation Reduction Act of 2022 – Highlights

{"version":"0.3.0","atoms":[],"cards":[],"markups":[["a",["href","https:\/\/www.nytimes.com\/1988\/06\/24\/us\/global-warming-has-begun-expert-tells-senate.html"]],["a",["href","https:\/\/tenor.com\/view\/lucy-football-peanuts-charlie-brown-gif-14006251"]],["a",["href","https:\/\/www.theatlantic.com\/science\/archive\/2022\/08\/senate-climate-inflation-reduction-bill-passed\/671073\/"]],["a",["href","https:\/\/www.democrats.senate.gov\/imo\/media\/doc\/inflation_reduction_act_one_page_summary.pdf"]],["b"],["a",["href","https:\/\/www.jdsupra.com\/legalnews\/the-ira-s-transformative-tax-incentives-4082010\/"]],["a",["href","https:\/\/www.natlawreview.com\/article\/president-biden-signs-inflation-reduction-act-what-will-mean-clean-energy-and"]],["a",["href","https:\/\/www.democrats.senate.gov\/imo\/media\/doc\/environmental_justice_in_the_inflation_reduction_act.pdf"]],["a",["href","https:\/\/www.drought.gov\/sectors\/wildfire-management"]],["a",["href","https:\/\/www.indian.senate.gov\/sites\/default\/files\/2022-08-16%20%28Final%29%20SCIA%20IRA%20Resource%20Guide.pdf"]],["a",["href","https:\/\/www.democrats.senate.gov\/inflation-reduction-act-of-2022"]],["a",["href","http:\/\/www.jlhlawoffice.com\/"]],["i"],["strong"]],"sections":[[1,"p",[[0,[],0,"August 22, 2022"]]],[1,"p",[[0,[],0,"The Inflation Reduction Act of 2022 (IRA), signed\ninto law by President Biden on August 16, 2022, was generally presented as a\nmeans to fight inflation. Whether it does so or not, the part we might\nall be telling future generations about is how the new law finally took\nmeaningful steps to combat climate change \u2013 a challenge first brought to\nCongress thirty-four years ago."]]],[1,"p",[[0,[],0,"It was "],[0,[0],1,"June\n1988 when NASA scientists first urged legislators to take action on global\nwarming"],[0,[],0,". Since that time, though, legislative hopes were "],[0,[1],1,"repeatedly\ndashed"],[0,[],0," in the Senate (see report in"],[0,[2],1,"\nThe Atlantic"],[0,[],0,"). Now, though \u2013 despite one of the most divided\natmospheres in American political history \u2013 conditions were fortuitously\nright. "]]],[1,"p",[[0,[],0,"The new law promises to help shore up American energy security,\nfight climate change, and improve the resilience of American communities. The\nIRA "],[0,[3],1,"raises\n$737 billion in total"],[0,[],0,", and authorizes $369 billion in spending on energy\nand climate change. It is no less than a momentous stride forward. A few\nhighlights follow."]]],[1,"p",[[0,[4],1,"Domestic Clean Energy and Decarbonization"]]],[1,"p",[[0,[],0,"The IRA reduces reliance on fossil fuels by making\nan unprecedented investment in domestic clean energy production. Plans to\nreduce carbon emissions by 40 percent in the U.S. by 2030 will proceed through "],[0,[5],1,"tax\nincentives"],[0,[],0," for energy efficient buildings, grants to state and\nlocal governments to adopt the latest energy codes and zero-energy stretch\ncodes, rebate programs for electrifying homes, and funding to improve energy\nefficiency and resilience in affordable housing. "]]],[1,"p",[[0,[4],1,"Electric Vehicles"]]],[1,"p",[[0,[],0,"The IRA includes up to $7,500 in tax credits for new\nelectric vehicles and $4,000 for used electric vehicles, while also helping\nmanufacturers promote sales by eliminating a cap on the number of vehicles sold\nper manufacturer that may qualify for the tax credit. To promote the sale of\nelectric cars to the middle class, the EV tax credits are available only to\nindividuals making less than $150,000 per year, and couples making less than\n$300,000."]]],[1,"p",[[0,[4],1,"Support for Clean On-Shore Manufacturing"]]],[1,"p",[[0,[],0,"The IRA makes a heavy investment to "],[0,[6],1,"promote\nmanufacturing using clean energy and materials"],[0,[],0,",\nwith $60 billion allocated for domestic clean energy manufacturing across the\nfull supply chain. The manufacturing incentives aim to alleviate inflation and\nreduce the risk of dramatic price fluctuations by reducing the cost of clean\nenergy, technology and transportation, as well as providing relief from supply\nchain disruptions."]]],[1,"p",[[0,[4],1,"Environmental Justice"]]],[1,"p",[[0,[7],1,"The\nIRA takes important steps toward environmental justice"],[0,[],0,"\nfor disadvantaged communities. It includes several new grant programs: $3\nbillion for Environmental and Climate Justice Block Grants for community-led\nprojects to address disproportionate environmental and public health harms; $3\nbillion for Neighborhood Access and Equity Grants to support safety, equity,\nand access to affordable transportation in underserved communities; and $3\nbillion for Grants to Reduce Air Pollution at Ports that will support the use\nof zero-emission equipment and technology and the development of port climate\naction plans."]]],[1,"p",[[0,[4],1,"Resilience"]]],[1,"p",[[0,[],0,"With climate change-driven "],[0,[8],1,"wildfires\nand droughts increasing in the west"],[0,[],0,", the IRA will\nstrengthen rural, "],[0,[9],1,"Tribal\nand Native Communities"],[0,[],0," by providing financial incentives and support\nespecially to farmland and wildland owners to participate in climate solutions,\nand by providing support for rural communities to adapt to the changing\nenvironment."]]],[1,"p",[[0,[4],1,"The Path Ahead"]]],[1,"p",[[0,[],0,"While the new law does not contain everything that\nactivists had hoped for to combat climate change and protect future\ngenerations, it is a major step in the right direction \u2013 and at long last, the\nlegislative path has been cleared for true progress."]]],[1,"p",[[0,[],0,"For a full text of the\nIRA and supporting summaries of each section, see:"],[0,[10],1," https:\/\/www.democrats.senate.gov\/inflation-reduction-act-of-2022"]]],[1,"p",[[0,[],0,"Jessyca Henderson is\nan attorney and architect based in Maryland, providing legal services and\nconsulting to design professionals, corporations and government related to\nsustainable design, building science, and environment. "],[0,[11],1,"www.jlhlawoffice.com"]]],[1,"p",[[0,[12,13],2,"AIA Contract Documents\nhas provided this article for general informational purposes only. The\ninformation provided is not legal opinion or legal advice and does not create\nan attorney-client relationship of any kind. This article is also not intended\nto provide guidance as to how project parties should interpret their specific\ncontracts or resolve contract disputes, as those decisions will need to be made\nin consultation with legal counsel, insurance counsel, and other professionals,\nand based upon a multitude of factors. "]]]]}