Chair Castor Lauds Passage of Inflation Reduction Act, Largest Climate Investment in U.S. History

WASHINGTON (August 12, 2022) – Chair Kathy Castor of the House Select Committee on the Climate Crisis released the following statement on Friday, after the House of Representatives passed the Inflation Reduction Act, which includes the largest climate and clean energy investment in U.S. history:

“In the last election, millions of Americans gave Democrats majorities in Congress and elected the Biden-Harris ticket with the promise that we'd take the climate emergency seriously. Today, we're keeping that promise,” said Chair Castor. “To the folks who raised their voices to demand historic climate action, and who used their votes to elect leaders who give a damn about their futures, I can only say: Thank you. This victory is for you. And it would not have happened without you. 

“The Inflation Reduction Act is by far the largest and most consequential legislation we've passed to address the costly climate crisis. It will usher in an era of clean energy innovation that will lower costs, create family-sustaining jobs, and make our communities more resilient. It will reduce our dependence on expensive fossil fuels and clean up our air, as we reduce pollution and move closer to net zero. And it will empower American workers to lead the global clean economy, as we produce more of our energy here in America, bolster our energy independence, and strengthen our domestic manufacturing supply chain.

“We owe a debt of gratitude to the leadership of Speaker Pelosi and the countless House Democrats who shaped this bill. I can tie every clean energy, environmental justice, and cost-saving provision in this new law directly to the ideas and work done by House Democrats and advocates in their communities. How do I know? Because our Select Committee worked with so many of them to shape the future of climate action in Congress - and to create an unprecedented Climate Crisis Action Plan.

“When Speaker Pelosi created our Select Committee in 2019, she tasked us with developing a roadmap for solving the climate crisis, asking us to reach out to a broad coalition of Americans to figure out the best way forward. We met with innovators, scientists, environmental justice advocates, farmers, the faith community, young activists, unions, insurers, tribal leaders, doctors, nurses, businesses, and many others. Together, we found solutions and bridged coalitions to support a clean, healthy, and just economy. We also took a hard look at the work needed to urgently reduce climate pollution - as scientists tell us we must - and to address the costly, frequent disasters that threaten our communities. With the support and input of countless allies, we released our Climate Crisis Action Plan in the summer of 2020, which was described by one journalist as the most detailed and well-thought plan for addressing climate change that has ever been a part of U.S. politics.

“Since then, Congressional Democrats and President Biden have taken an all-of-government approach to climate action: out of the 715 recommendations in our Action Plan, more than 200 have already been turned into law. The Inflation Reduction Act builds on the climate progress we've already made through the Bipartisan Infrastructure Law, the National Defense Authorization Acts, the CHIPS & Science Act, and our yearly appropriations bills. And it builds on the incredible work being done by local communities, states, farmers, businesses, and individuals across our great country.

“We are not done. We must do more. But today is a day for celebration. Let the hope and energy that springs from this victory be a light that shines the way forward to a healthy, resilient, and just America, and to a livable planet Earth.”

Climate and clean energy related provisions in the Inflation Reduction Act include: 

• $9 billion in consumer home energy rebate programs, focused on low-income consumers, to electrify home appliances and for energy efficient retrofits;
• 10 years of consumer tax credits to make homes energy efficient and run on clean energy, making heat pumps, rooftop solar, electric HVAC and water heaters more affordable;
• $4,000 consumer tax credit for lower/middle income individuals to buy used-clean vehicles, and up to $7,500 tax credit to buy new clean vehicles;
• $1 billion grant program to make affordable housing more energy efficient;
• Production tax credits to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing, estimated to invest $30 billion;
• $10 billion investment tax credit to build clean technology manufacturing facilities, like facilities that make electric vehicles, wind turbines and solar panels;
• $500 million in the Defense Production Act for heat pumps and critical minerals processing;
• $2 billion in grants to retool existing auto manufacturing facilities to manufacture clean vehicles, ensuring that auto manufacturing jobs stay in the communities that depend on them;
• Up to $20 billion in loans to build new clean vehicle manufacturing facilities across the country;
• $2 billion for National Labs to accelerate breakthrough energy research;
• Tax credits for clean sources of electricity and energy storage and roughly $30 billion in targeted grant and loan programs for states and electric utilities to accelerate the transition to clean electricity;
• Tax credits and grants for clean fuels and clean commercial vehicles to reduce emissions from all parts of the transportation sector;
• Grants and tax credits to reduce emissions from industrial manufacturing processes, including almost $6 billion for a new Advanced Industrial Facilities Deployment Program to reduce emissions from the largest industrial emitters like chemical, steel and cement plants;
• Over $9 billion for Federal procurement of American-made clean technologies to create a stable market for clean products, including $3 billion for the U.S. Postal Service to purchase zero-emission vehicles;
• $27 billion clean energy technology accelerator to support deployment of technologies to reduce emissions, especially in disadvantaged communities;
• A Methane Emissions Reduction Program to reduce the leaks from the production and distribution of natural gas;
• The Environmental and Climate Justice Block Grants, funded at $3 billion, to invest in community led projects in disadvantaged communities and community capacity building centers to address disproportionate environmental and public health harms related to pollution and climate change;
• The Neighborhood Access and Equity Grants, funded at $3 billion, to support neighborhood equity, safety, and affordable transportation access with competitive grants to reconnect communities divided by existing infrastructure barriers, mitigate negative impacts of transportation facilities or construction projects on disadvantaged or underserved communities, and support equitable transportation planning and community engagement activities;
• Grants to Reduce Air Pollution at Ports, funded at $3 billion, support the purchase and installation of zero-emission equipment and technology at ports;
• $1 billion for clean heavy-duty vehicles, like school and transit buses and garbage trucks;
• More than $20 billion to support climate-smart agriculture practices;
• $5 billion in grants to support healthy, fire resilient forests, forest conservation and urban tree planting;
• Tax credits and grants to support the domestic production of biofuels, and to build the infrastructure needed for sustainable aviation fuel and other biofuels;
• $2.6 billion in grants to conserve and restore coastal habitats and protect communities that depend on those habitats; and
•  $4 billion in funding for mitigating the effects of drought.

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