Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change

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Inflation Reduction Act of 2022 (IRA):

Provisions Related to Climate Change

Updated October 26, 2023

Congressional Research Service

https://crsreports.congress.gov

R47262

SUMMARY

Inflation Reduction Act of 2022 (IRA):

Provisions Related to Climate Change

On August 16, 2022, President Biden signed H.R. 5376 (P.L. 117-169), a budget reconciliation

measure commonly referred to as the “Inflation Reduction Act of 2022” (IRA). IRA contains

eight titles, each with some provisions that directly or indirectly address issues related to climate

change, including reduction of U.S. greenhouse gas (GHG) emissions or promotion of adaptation

and resilience to climate change impacts.

R47262

October 26, 2023

Jonathan L. Ramseur,

Coordinator

Specialist in Environmental

Policy

The funding and financial incentives of IRA promote the deployment of low- and no-GHG

emission technologies. This deployment would likely reduce or avoid some quantity of GHG emissions compared to baseline

projections. A 2023 journal article in Science compared emissions estimates from a number of modeling groups. The groups’

estimates indicated that under baseline conditions (i.e., federal, state, and local policies and practices in place before IRA),

U.S. GHG emissions would decrease by 25% to 31% by 2030 compared to 2005 levels. The same modeling teams estimated

that the IRA provisions would reduce U.S. GHG emissions by 33% to 40% by 2030 compared to 2005 levels. The range of

estimates from the baseline and IRA scenarios is due to varied assumptions in the models, such as future oil and natural gas

prices, among other uncertain factors. Actual GHG emission levels will depend on how the provisions are implemented, the

growth rate of the U.S. economy, fuel prices, and a range of other factors.

A number of factors will likely play a role in determining the economic effects of IRA and the distribution of these effects

across geographic areas, income groups, and communities. These factors include federal implementation of the law, and state,

local, and private responses to the financial incentives and provisions in IRA.

This report identifies provisions of IRA related to climate change, with abbreviated information about their content and the

Congressional Budget Office’s estimates of revenue effects over the period of the law, from 2022 to 2031. The provisions are

organized by sectoral sources of GHG emissions:

•

•

•

•

•

•

•

•

•

electricity;

transportation;

fossil fuel resources;

buildings and energy efficiency;

manufacturing;

environment and climate justice;

agriculture, forestry, and land conservation;

climate research; and

cross-cutting.

Congressional Research Service

Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change

Contents

Background ..................................................................................................................................... 1

Tables

Table 1. Climate-Related Provisions in P.L. 117-169 ...................................................................... 4

Contacts

Author Information........................................................................................................................ 29

Congressional Research Service

Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change

Background

On August 16, 2022, President Biden signed H.R. 5376 (P.L. 117-169), a budget reconciliation

measure commonly referred to as the “Inflation Reduction Act of 2022” (IRA).1 IRA contains

eight titles, each with some provisions that directly or indirectly address issues related to climate

change, including reduction of U.S. greenhouse gas (GHG) emissions or promotion of adaptation

and resilience to climate change impacts. Some selected provisions in the eight titles are listed

below.

•

•

•

•

•

•

Title I—Committee on Finance includes provisions that modify, extend, or

provide new tax credits for electricity from clean and renewable resources,

alternative fuels and alternative fuel infrastructure, residential and commercial

energy efficiency, advanced energy manufacturing, and clean vehicles, while

reinstating or extending certain taxes on oil and coal.

Title II—Committee on Agriculture, Nutrition, and Forestry includes

provisions that provide funding for the U.S. Department of Agriculture (USDA)

for agriculture, forestry, and land conservation.

Title III—Committee on Banking, Housing, and Urban Affairs includes

provisions that provide funding to influence domestic industry to produce certain

materials and goods for the national defense, and for projects to increase energy

or water efficiency of affordable housing.

Title IV—Committee on Commerce, Science, and Transportation includes

provisions that provide funding for the National Oceanic and Atmospheric

Administration (NOAA) for coastal communities, NOAA facilities, and weather

research and forecasting; and for the Department of Transportation (DOT) for

aviation fuels and low-emission aviation technologies.

Title V—Committee on Energy and Natural Resources includes provisions

that provide funding for the Department of Energy (DOE) for energy rebates,

building codes, energy efficiency, transmission of electricity, advanced and

reduced-emission industrial facilities, and energy infrastructure, and loan

programs for advanced vehicle manufacturing; provides funding for the

Department of the Interior (DOI) for conservation of lands and resources,

drought preparedness, technical assistance to Insular Areas (i.e., American

Samoa, Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin

Islands), leasing for offshore wind energy development, and increased royalty

rates for federal land and offshore oil and gas leases.

Title VI—Committee on Environment and Public Works includes provisions

that provide funding to the Environmental Protection Agency (EPA) for a

Greenhouse Gas Reduction Fund, renewable fuels programs, environmental and

climate justice block grants, and more; provides funding to the Fish and Wildlife

Service for recovery plans for endangered and threatened species; and for

resilience and capacity of—and reducing damage to—habitats and infrastructure;

provides funding to the Council on Environmental Quality for collecting data on

environmental and climate issues, including tracking disproportionate burdens

and environmental impacts; provides funding to the Federal Highway

1 The law provided for reconciliation of the federal budget, allowing the Senate to pass it with a simple majority. For

further information on reconciliation, see, among other CRS products, CRS Report R44058, The Budget Reconciliation

Process: Stages of Consideration, by Megan S. Lynch and James V. Saturno.

Congressional Research Service

1

Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change

•

•

Administration (FHWA) and the General Services Administration (GSA) for

transportation projects, environmental reviews, and use of low-carbon

construction materials and products in federally funded transportation projects;

and directs EPA to impose a charge on methane emissions from specific

petroleum and natural gas system facilities.

Title VII—Committee on Homeland Security and Governmental Affairs

includes provisions that provide funding for several environmental programs,

including to the Department of Homeland of Security (DHS) to carry out

sustainability and environmental programs; the Federal Emergency Management

Agency (FEMA) for low-carbon building materials and low- or no-emission

energy projects; and the U.S. Postal Service to purchase zero-emission vehicles

and related infrastructure.

Title VIII—Committee on Indian Affairs includes provisions that provide

funding for the Bureau of Indian Affairs (BIA) and Office of Native Hawaiian

Relations for climate resilience and adaptation programs; and provides funding to

the BIA for a tribal electrification program.

The funding and financial incentives of IRA promote deployment of low- and no-GHG emission

technologies. This deployment would likely reduce or avoid some quantity of GHG emissions

compared to a baseline scenario (i.e., hypothetical scenario without IRA).

A 2023 journal article in Science compared emissions estimates from a number of modeling

groups. The groups’ estimates indicated that under baseline conditions (i.e., federal, state, and

local policies and practices in place before IRA), U.S. GHG emissions would decrease by 25% to

31% by 2030 compared to 2005 levels.2 The same modeling teams estimated that the IRA

provisions would reduce U.S. GHG emissions by 33% to 40% by 2030 compared to 2005 levels.

The range of estimates from the baseline and IRA scenarios is due to varied assumptions in the

models, such as future oil and natural gas prices, among other uncertain factors. Actual GHG

emission levels will depend on how the provisions are implemented, the growth rate of the U.S.

economy, fuel prices, and a range of other factors.

A number of factors will likely play a role in determining the economic effects of IRA and the

distribution of these effects across geographic areas, income groups, and communities. These

factors include federal implementation of the law, and state, local, and private responses to the

financial incentives and provisions in IRA. Assessments of the analyses published to date and

other information regarding GHG emissions and other effects of the law are beyond the scope of

this report.

Table 1 identifies climate-change-related provisions of IRA that are included in specific IRA

sections. The selected provisions include those that (1) are explicitly intended to affect GHG

emissions or climate-related or weather-disaster-related adaptation or resilience; (2) are intended

to influence deployment of technologies and practices that are widely recognized as influencing

GHG emissions, such as energy efficiency incentives or agricultural soil conservation; (3) may

affect the prices of fossil fuels, which are a major source of GHG emissions; (4) more generally

support climate or weather research, analysis, or policymaking.

The table provides a general overview of the provisions, Congressional Budget Office estimates

of the cumulative revenue effects (2022-2031) when available, and appropriations and funding

2 A 2023 journal article in Science compared emissions estimates from a number of modeling groups. See John Bistline

et al., “Emissions and Energy Impacts of the Inflation Reduction Act,” Science, June 30, 2023,

https://www.science.org/doi/10.1126/science.adg3781.

Congressional Research Service

2

Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change

mechanisms for applicable provisions. Funding mechanisms include grants, loans, and other

agency activities, the details of which are provided in the provision highlights column.

The table also identifies for congressional clients a CRS contact for each provision. In addition,

the table notes identify selected CRS products that offer further description of specific IRA

provisions and additional context.

The provisions are organized by sectoral sources of GHG emissions, compiling related and

possibly interacting provisions from different titles. The table sections are

•

•

•

•

•

•

•

•

•

electricity;

transportation;

fossil fuel resources;

buildings and energy efficiency;

manufacturing;

environment and climate justice;

agriculture, forestry, and land conservation;

climate research; and

cross-cutting.

Congressional Research Service

3

Table 1. Climate-Related Provisions in P.L. 117-169

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

ELECTRICITY

Section 13101

Extension and

Modification of Credit for

Electricity Produced from

Certain Renewable

Resourcesb

Extends and modifies the production tax credit (PTC) for

electricity produced from wind, biomass, geothermal, solar,

landfill gas, trash, qualified hydropower, and marine and

hydrokinetic resources; credit amounts depend in some cases

on meeting prevailing wage or apprenticeship requirements,

domestic content requirements, or being located in an “energy

community”

-51.062

—

—

Donald Marples

Section 13102

Extension and

Modification of Energy

Investment Tax Creditb

Extends and modifies the energy investment tax credit (ITC) for

investments in certain energy property, such as solar, fuel cells,

waste energy recovery, combined heat and power, small wind

property, microturbines, and geothermal heat pumps; expands

scope to include energy storage, qualified biogas properties,

electrochromic glass, and microgrid controllers, and

interconnection property; credit amounts depend in some cases

on meeting prevailing wage or apprenticeship requirements,

domestic content requirements, or being located in an “energy

community”

-13.962

—

—

Donald Marples

Section 13103

Increase in Energy Credit

for Solar and Wind

Facilities Placed in Service

in Connection with LowIncome Communitiesb

Allows allocation of “environmental justice solar and wind

capacity” credits in 2023 and 2024 in addition to otherwise

allowed ITCs

Revenue effects

included in Sections

13101 and 13102

—

—

Donald Marples

CRS-4

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 13104

Extension and

Modification of Credit for

Carbon Oxide

Sequestrationb

Extends and modifies the carbon oxide capture credit for

industrial carbon capture or direct air capture (DAC) facilities;

increases the credit amount, with higher credit amounts for

DAC; reduces the threshold amount of carbon oxide that must

be captured at a qualifying facility, adding the restriction for

electricity generating facilities that the property must be

designed to capture not less than 75% of the baseline carbon

oxide production or 60% for electricity generating facilities not

yet or recently placed into service; credit amounts depend in

some cases on meeting prevailing wage or apprenticeship

requirements

-3.229

—

—

Donald Marples

Section 13105

Zero-Emission Nuclear

Power Production

Creditb

Creates a new tax credit for qualifying nuclear power that

phases out as electricity prices rise; increased credit amounts

are available for taxpayers satisfying prevailing wage and

apprenticeship requirements

-30.001

—

—

Donald Marples

Section 13701

Clean Electricity

Production Creditb

Creates a new production tax credit for sale of qualified

domestically produced electricity with GHG emissions not

greater than zero; credit amounts depend in some cases on

meeting prevailing wage or apprenticeship requirements,

domestic content requirements, or being located in an “energy

community”

-11.204

—

—

Donald Marples

CRS-5

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 13702

Clean Electricity

Investment Creditb

Creates a new technology-neutral investment tax credit for

qualifying zero-emissions electricity generation facilities or

energy storage technology, with credit rates determined by

paying prevailing wage and meeting apprenticeship or domestic

content requirements, or in an energy community; allows for an

allocation for environmental justice solar and wind capacity

credits in a low-income community or on Indian land

-50.858

—

—

Donald Marples

Section 13703

Cost Recovery for

Qualified Facilities,

Qualified Property, and

Energy Storage

Technologyb

Allows cost recovery as a five-year property for facilities

qualifying for the clean electricity production or investment tax

credits

-0.624

—

—

Donald Marples

Section 22001

Additional Funding for

Electric Loans for

Renewable Energy

Provides funding to USDA for electric loans for renewable

energy under the Rural Electrification Act, including for projects

that store electricity

—

1.000

Direct loans

Kelsi Bracmort

Section 22002

Rural Energy for America

Program

Provides funding to USDA to support the Rural Energy for

America Program (REAP), which provides grants for energy

efficiency and renewable energy projects ($1.7 billion); provides

funding for grants and loans for underutilized renewable energy

technologies and technical assistance with REAP applications

($304 million)

—

2.025

Grants and direct loans

Kelsi Bracmort

CRS-6

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 22004

USDA Assistance for

Rural Electric

Cooperatives

Provides funding to USDA to offer financial assistance (e.g.,

loans) to eligible entities for the long-term resiliency, reliability,

and affordability of rural electric systems through the purchase

of renewable energy, renewable energy systems, zero-emission

systems, carbon capture and storage systems, and more

—

9.700

Direct loans and other

assistance

Kelsi Bracmort

Section 22005

Additional USDA Rural

Development

Administrative Funds

Provides funding to USDA for administration and

implementation of Sections 22001-22004, among other

provisions

—

0.100

Other agency activities

Kelsi Bracmort

Section 50141

Funding for Department

of Energy Loan Programs

Officec

Increases loan guarantee commitment authority to $40 billion

for the Department of Energy (DOE) Title XVII Innovative

Technology Loan Guarantee Program (§1703), supporting

eligible projects that avoid, reduce, utilize, or sequester air

pollutants or anthropogenic GHG emissions, and—with the

exception of projects supported by a State Energy Financing

Institution—employ new or significantly improved technologies;

provides funding to DOE to pay for loan guarantee costs and

program administration

—

3.600

Loan guarantees

Phillip Brown

CRS-7

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 50144

Energy Infrastructure

Reinvestment Financingb

Creates a temporary loan guarantee authority of $250 billion

for DOE under Title XVII of the Energy Policy Act of 2005

(§1706) for projects that (1) retool, repower, repurpose, or

replace energy infrastructure, subject to the requirement that

fossil fuel electricity generation projects must have controls to

avoid, reduce, utilize, or sequester air pollutants and

anthropogenic GHG emissions, or (2) enable operating

infrastructure to avoid, reduce, utilize, or sequester air

pollutants or anthropogenic GHG emissions; for the purpose of

this program, “energy infrastructure” means a facility and

associated equipment used for (1) generation or transmission of

electrical energy, or (2) production, processing, and delivery of

fossil fuels, fuels derived from petroleum, or petrochemical

feedstocks; provides funding to DOE to implement Section

1706 activities

—

5.000

Loan guarantees

Phillip Brown

Section 50145

Tribal Energy Loan

Guarantee Programb

Permanently increases the Tribal Energy Loan Guarantee

Program lending authority to $20 billion and appropriates

money for program activities

—

0.075

Loan guarantees

Corrie Clark

Section 50151

Transmission Facility

Financingd

Creates a new direct loan program for development of certain

transmission projects located in a National Interest Electric

Transmission Corridor (NIETC), as designated by DOE;

NIETCs are to promote goals such as energy security or use of

intermittent energy sources such as wind and solar

—

2.000

Direct loans

Ashley Lawson

Section 50152

Grants to Facilitate the

Siting of Interstate

Electricity Transmission

Linesd

Creates a new DOE grant program generally for state and local

governments aimed at facilitating the siting of certain onshore

and offshore transmission lines, to cover project studies, host

negotiations, participate in federal and state regulatory

proceedings, and promote economic development in affected

communities

—

0.760

Grants

Ashley Lawson

CRS-8

CBO Estimated

Revenue Effects

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Section Number and

Title

Overview of Climate-Related Provisions

Section 50153

Interregional and

Offshore Wind Electricity

Transmission Planning,

Modeling, and Analysisd

Provides new funding to DOE for interregional and offshore

wind electricity transmission planning, modeling, and analysis,

and stakeholder convening; may include planning for the effects

of weather changes due to climate change on the reliability and

resilience of the electric grid

—

0.100

Planning, modeling,

analysis, among others

Ashley Lawson

Section 50251

Leasing on the Outer

Continental Shelfe

Authorizes DOI to issue offshore wind leases in portions of the

Mid- and South Atlantic and the Gulf of Mexico that had

previously been withdrawn from leasing disposition through

2032; authorizes renewable energy leasing offshore of U.S.

territories and directs DOI to take steps to pursue offshore

wind lease sales in these locations

0.160f

—

—

Laura Comay

Section 60107

Low Emissions Electricity

Program

Provides funds to EPA to support education, outreach, technical

assistance, and/or partnerships to (1) consumers; (2) lowincome and disadvantaged communities; (3) industries; and (4)

state, tribal, and local governments; directs EPA to assess within

one year of enactment the GHG emission reductions

anticipated to result from changes in domestic electricity

generation and use each year through 2031

—

0.087

Technical assistance,

outreach, and

partnerships

Jonathan

Ramseur

Section 80003

Tribal Electrification

Program

Adds funds to BIA for zero-emission electricity systems for

tribal homes, including associated home repairs and retrofitting

—

0.150

Various mechanisms

under BIA authorities

Mariel Murray

CRS-9

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

TRANSPORTATION

Section 13201

Extension of Incentives

for Biodiesel, Renewable

Diesel and Alternative

Fuelsb

Extends existing tax credits for alternative fuels and alternative

fuel mixtures and biodiesel and renewable diesel

-5.571

—

—

Nicholas Buffie

Section 13202

Extension of Second

Generation Biofuel

Incentivesb

Extends the existing second-generation biofuel producer tax

credit

-0.054

—

—

Nicholas Buffie

Section 13203

Sustainable Aviation Fuel

Creditb

Creates a new tax credit for the sale or mixture of sustainable

aviation fuel; credit amount is $1.25 per gallon with a

supplemental credit amount of $0.01 per gallon for each

percentage point by which the lifecycle GHG emissions

reduction percentage for the fuel exceeds 50%

-0.049

—

—

Nicholas Buffie

Section 13204

Clean Hydrogenb

Creates a new tax credit for the qualified production of clean

hydrogen; the credit rate would be determined by the lifecycle

GHG emissions rate achieved in producing clean hydrogen, with

higher credit amounts available when prevailing wage and

apprenticeship requirements are met

-13.166

—

—

Nicholas Buffie

CRS-10

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 13401

Clean Vehicle Creditg

Extends and modifies vehicle tax credits; revised credit provides

up to $7,500 for the purchase of fuel cell or eligible new plug-in

electric vehicles meeting a critical minerals requirement and/or

battery components requirement; the credit is disallowed for

certain higher-income taxpayers and is subject to vehicle price

limits

-7.541

—

—

Nicholas Buffie

Section 13402

Credit for PreviouslyOwned Clean Vehiclesg

Creates a new tax credit—$4,000, limited to 30% of the

purchase price—for the purchase of previously owned plug-in

electric or fuel cell vehicles, subject to purchaser income and

vehicle price limits

-1.347

—

—

Nicholas Buffie

Section 13403

Qualified Commercial

Clean Vehiclesg

Creates a new tax credit for qualified commercial clean vehicles;

credit amount varies by vehicle cost and weight

-3.583

—

—

Nicholas Buffie

Section 13404

Alternative Fuel Refueling

Property Creditb

Extends and modifies a tax credit for qualifying charging or

alternative fuel refueling property at a business or taxpayer’s

principal residence; eligible charging or refueling property must

be placed in service within a low-income or rural census tract

-1.738

—

—

Nicholas Buffie

Section 13704

Clean Fuel Production

Creditb

Creates a new tax credit for domestic clean fuel production,

depending on the type of fuel (aviation or nonaviation), the CO2

emissions rate of the fuel, and the producer’s labor practices

-2.946

—

—

Nicholas Buffie

CRS-11

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 40007

Alternative Fuel and LowEmission Aviation

Technology Program

Creates a competitive grant program in DOT for sustainable

aviation fuel (SAF) and low-emission aviation technologies;

financial assistance is for the production, transportation,

blending, and storage of SAF as well as for projects related to

low-emission aviation technologies, among other things; SAF is

defined as achieving at least a 50% lifecycle greenhouse gas

emission reduction in comparison with petroleum-based jet fuel

—

0.297

Grants

Kelsi Bracmort

Section 60101

Clean Heavy-Duty

Vehicles

Creates EPA program to provide grants and rebates to eligible

recipients (a state, municipality, Indian tribe, or nonprofit school

transportation association) or eligible contractors for the

incremental costs of replacing eligible vehicles with zeroemission vehicles, for associated infrastructure and workforce

development and training, and planning and technical activities;

includes $400 million for recipients that propose to replace

eligible vehicles to serve one or more communities in air

pollution nonattainment areas

—

1.000

Grants and rebates

Richard

Lattanzio

Section 60102

Grants to Reduce Air

Pollution at Ports

Creates EPA program to provide grants and rebates to

purchase or install zero-emission port equipment or technology

at or to serve ports, for connected planning or permitting, and

“to develop qualified climate action plans”; of rebates and

grants, $750 million is for activities with respect to ports in air

pollution nonattainment areas

—

3.000

Grants and rebates

Richard

Lattanzio

Section 60105

Funding to Address Air

Pollution

Provides funding ($20 million) to EPA for grants and other

activities to monitor methane emissions (§60105(e)); provides

funding ($5 million) to EPA for grants to states to adopt and

implement GHG and zero-emission standards for mobile

sources (§60105(g))

—

0.025

Grants and other

authorized activities

Richard

Lattanzio

CRS-12

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 60108

Funding for Section

211(O) of the Clean Air

Act

Provides funding to EPA to carry out the Renewable Fuel

Standard program, in part, for data collection and analyses for

lifecycle greenhouse gas emissions of a fuel ($5 million);

provides funding for new grants to support investment in

advanced biofuels ($10 million)

—

0.015

Grants, analysis, and

data collection

Kelsi Bracmort

Section 60501

Neighborhood Access

and Equity Grants

Program

Provides funding to the Federal Highway Administration

(FHWA) for competitive grants to support projects to improve

walkability, safety, and affordable transportation access; to

mitigate or remediate negative impacts from a surface

transportation facility, such as those that create an obstacle to

community connectivity; and for planning and capacity building

activities in disadvantaged or underserved communities

—

3.205

Grants

Robert Kirk

Section 60506

Low-Carbon

Transportation Materials

Grants

Provides funding to FHWA to reimburse incremental costs or

provide incentives to eligible recipients for use in projects of

construction materials with substantially lower embodied GHG

emissions, as determined by EPA (see §60116) and reviewed by

FHWA for appropriate use

—

2.000

Reimbursements or

incentives

Robert Kirk

Section 70002

United States Postal

Service Clean Fleets

Provides funding to the U.S. Postal Service to purchase zeroemission delivery vehicles ($1.290 billion) and for purchase,

design, and installation of related infrastructure leases from

nonfederal entities ($1.710 billion)

—

3.000

Other agency activities

Melissa Diaz

CRS-13

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

FOSSIL FUEL

RESOURCES

Section 50261

Offshore Oil and Gas

Royalty Rate

Increases the minimum royalty rate for new offshore fossil fuel

leases from 12.5% to 16.6%; sets a maximum royalty rate of

18.8% for new offshore oil and gas leases for 10 years

0.484f

(total estimate for

§§50261-50265)

—

—

Laura Comay

Section 50262

Mineral Leasing Act

Modernization

Increases the minimum royalty rate for new onshore fossil fuel

leases from 12.5% to 16.6%; eliminates noncompetitive leasing,

adjusts rental rates, and establishes a higher minimum bid on

federal leases

0.484f

(total estimate for

§§50261-50265)

—

—

Laura Comay

Section 50263

Royalties on All Extracted

Methane

Modifies the scope of royalty collection for natural gas

produced on federal land or the outer continental shelf to

include “gas that is consumed or lost by venting, flaring, or

negligent releases through any equipment during upstream

operations,” with certain exceptions

0.484f

(total estimate for

§§50261-50265)

—

—

Laura Comay

Section 50264

Lease Sales Under the

2017-2022 Outer

Continental Shelf Leasing

Program

Requires DOI to conduct three offshore oil and gas lease sales

that had been canceled under the 2017-2022 five-year offshore

oil and gas leasing program; specifies dates by which each sale

must be conducted; requires DOI to issue leases from Gulf of

Mexico Lease Sale 257, which was conducted in November

2021 but was later vacated by a court ruling

0.484f

(total estimate for

§§50261-50265)

—

—

Laura Comay

CRS-14

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 50265

Ensuring Energy Securityh

Requires DOI to conduct oil and gas lease sales each year for a

decade as a prerequisite to issuing leases or rights-of-way for

any new solar or wind energy; without offering minimum parcels

for fossil fuel leasing, the federal government would not have

the authority to approve utility-scale renewable energy projects

on public lands or waters

0.484f

(total estimate for

§§50261-50265)

—

—

Laura Comay

Section 60113

Methane Emissions

Reduction Programi

Establishes a methane emissions charge (fee) that applies to

specific types of petroleum and natural gas system facilities;

charge based on emissions reported to EPA and an emissions

threshold that varies by facility type; appropriates $850 million

to EPA to provide grants to these facilities to help reduce their

methane emissions; appropriates $700 million to EPA to

support similar activities at “marginal conventional wells”

6.350

1.550

Grants

Jonathan

Ramseur

Section 13301

Extension, Increase, and

Modifications of

Nonbusiness Energy

Property Creditb

Extends and modifies the tax credit for qualified energy

efficiency improvements made to a taxpayer’s residence;

increases the credit rates, and modifies energy efficiency

standards over time; expands credit to include home energy

audits

-12.451

—

—

Nicholas Buffie

Section 13302

Residential Clean

Electricity Creditb

Extends and modifies tax credit for purchase of residential solar

electric property, solar water heating property, fuel cells,

geothermal heat pump property, small wind energy property,

and qualified biomass fuel property; adds qualified battery

storage technology

-22.022

—

—

Nicholas Buffie

BUILDINGS AND

ENERGY

EFFICIENCY

CRS-15

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 13303

Energy Efficient

Commercial Buildings

Deductionb

Updates energy efficiency requirements to qualify for the tax

deduction for certain energy-saving commercial building

property installed as part of the (1) interior lighting system; (2)

heating, cooling, ventilation, or hot water system; or (3) building

envelope; deduction amount depends on meeting requirements

for prevailing wage and apprenticeship requirements; allows a

tax-exempt entity to allocate the deduction to the designer of

the building or retrofit plan

-0.362

—

—

Nicholas Buffie

Section 13304

Extension, Increase, and

Modifications of New

Energy Efficient Home

Creditb

Extends and modifies the energy efficient new home credit;

increases the credit amount and provides a larger credit if

prevailing wage and apprenticeship requirements are met; allows

credit for low-income housing tax credit recipients

-2.043

—

—

Nicholas Buffie

Section 30002

Improving Energy

Efficiency or Water

Efficiency or Climate

Resilience of Affordable

Housing

Provides funding to the Department of Housing and Urban

Development (HUD) for loans, loan modifications, and grants to

finance projects in existing HUD-funded multifamily housing

developments that improve energy or water efficiency, enhance

indoor air quality or sustainability, implement the use of zeroemission electricity generation, low-emission building materials

or processes, energy storage, or building electrification

strategies, or address climate resilience; provides direct loan

authority not to exceed $4 billion

—

1.000

Loans, loan

modifications, and

grants

Maggie McCarty

Libby Perl

Section 50121

Home Energy

Performance-Based,

Whole-House Rebates

Provides funding to DOE for state energy offices ($4.3 billion)

to develop and implement a rebate program to homeowners

and aggregators for whole-house energy saving retrofits

—

4.300

Grants

Corrie Clark

CRS-16

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 50122

High-Efficiency Electric

Home Rebate Program

Provides funding to DOE for state energy offices ($4.275 billion)

and Indian tribes ($225 million) to develop and operate highefficiency electric home rebate programs for appliance and

nonappliance upgrades

—

4.500

Grants

Corrie Clark

Section 50123

State-Based Home Energy

Efficiency Contractor

Training Grants

Provides funding to DOE for states to establish programs

providing training and education to contractors who install

home energy efficiency and electrification improvements

—

0.200

Financial assistance

Corrie Clark

Section 50131

Assistance for Latest and

Zero Building Energy

Code Adoption

Provides funding to DOE for grants to state and local

governments (1) to adopt the latest residential or commercial

building energy codes and implement a plan to achieve full

compliance with codes ($330 million), and (2) to adopt

residential or commercial building energy codes that meet or

exceed the zero energy provisions of the 2021 International

Energy Conservation Code or equivalent stretch code and

implement a plan to achieve full compliance with codes ($670

million)

—

1.000

Grants

Corrie Clark

Section 60502

Assistance for Federal

Buildings

Provides funding to the General Services Administration (GSA)

for the Federal Buildings Fund, to convert GSA facilities to highperformance green buildings

—

0.250

Other agency activities

Garrett Hatch

Section 60503

Use of Low-Carbon

Materials

Provides funding to GSA to acquire and install materials that

have substantially lower levels of embodied GHGs as

determined by EPA (see §60501), for use in construction or

alteration of GSA buildings

—

2.150

Other agency activities

Garrett Hatch

CRS-17

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 60504

General Services

Administration Emerging

Technologies

Provides funding to GSA’s Federal Buildings Fund for emerging

and sustainable technologies, and related sustainability and

environmental programs

—

0.975

Other agency activities

Garrett Hatch

Section 70006

FEMA Building Materials

Program

Allows the Federal Emergency Management Agency (FEMA) to

provide financial assistance for hazard mitigation under the

Robert T. Stafford Disaster Relief and Emergency Assistance

Act for costs of low-carbon materials and incentives for lowcarbon and net-zero energy projects

—

—j

Financial assistance

Diane Horn

Section 13501

Extension of the

Advanced Energy Project

Creditb

Provides $10 million in allocations of a tax credit for qualifying

investments in advanced energy projects, with at least $4 billion

for “energy communities”; Secretary of the Treasury is to

establish a program to award credits to project sponsors; credit

rate depends on whether a project pays prevailing wages and

meets apprenticeship requirements

-6.255

—

—

Donald Marples

Section 13502

Advanced Manufacturing

Production Creditb

Creates a new production tax credit for domestic production

and sale of qualifying solar and wind components

-30.632

—

—

Donald Marples

MANUFACTURING

CRS-18

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 30001

Enhanced Use of the

Defense Production Actk

Provides funding to carry out activities under the Defense

Production Act of 1950 (DPA); on March 31, 2022, and June 6,

2022, President Biden invoked the DPA to accelerate domestic

production of clean energy technologies, including large-capacity

batteries, solar panel components, and heat pumps, among

othersl

—

0.500

Other agency activities

Heidi Peters

Section 50142

Advanced Technology

Vehicle Manufacturing

Provides funding to DOE for costs of loans for equipping,

expanding, or establishing manufacturing facilities in the United

States to produce, or for engineering integration performed in

the United States of, advanced technology vehicles that emit,

under any possible operational mode or condition, low- or

zero-GHG emissions; eliminates previous loan program cap of

$25 billion

—

3.025

Direct loans

Melissa Diaz

Section 50143

Domestic Manufacturing

Conversion Grants

Provides funding to DOE for grants for domestic production of

efficient hybrid, plug-in electric hybrid, plug-in electric drive, and

hydrogen fuel cell electric vehicles, and administrative costs of

making grants

—

2.000

Grants

Melissa Diaz

Section 50161

Advanced Industrial

Facilities Deployment

Program

Provides funding to DOE for financial assistance for clean energy

demonstrations by eligible facilities, with priority to projects to

achieve GHG reductions, provide the greatest benefit for the

greatest number of people in the area, and participate in a

partnership with purchasers of the facility’s output

—

5.812

Grant, rebate, direct

loan, or cooperative

agreement

Corrie Clark

Section 60109

Funding for

Implementation of the

American Innovation and

Manufacturing Act

Provides funding to EPA to implement provisions to reduce

hydrofluorocarbons (HFCs) under the American Innovation and

Manufacturing Act, including $20 million for general

implementation, $3.5 million to deploy new implementation and

compliance tools, and $15 million for competitive grants for

“reclaim and innovative destruction technologies”

—

0.039

Grants

Richard

Lattanzio

CRS-19

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 60112

Environmental Product

Declaration Assistance

Provides funding to EPA to develop and carry out a program to

support development, enhanced standardization and

transparency, and reporting criteria for environmental product

declarations that include measurements of the embodied GHG

emissions of the material or product associated with all relevant

stages of production, use, and disposal, and conformance with

international standards, for construction materials and products

(see also §60106); includes grants and technical assistance to

manufacturers of construction materials and to states, tribes,

and nonprofit organizations that assist such manufacturers; and

other activities

—

0.250

Grants and technical

assistance

Richard

Lattanzio

Section 60116

Low-Embodied Carbon

Labeling for Construction

Materials

Provides funding to EPA to develop a program that identifies

and labels construction materials with substantially lower levels

of embodied GHG emissions compared to industry averages, in

consultation with the Federal Highway Administration (FHWA)

for construction materials used in transportation projects and

GSA for construction materials used for federal buildings; in

association with funds provided in Section 60503 (federal

buildings), Section 60506 (transportation), and Section 70006 to

federal agencies to promote use of low-carbon materials, and

Section 60112 to support Environmental Product Declarations

to include measurements of embodied GHG emissions in

products

—

0.100

Other agency activities

Richard

Lattanzio

CRS-20

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

ENVIRONMENT

AND CLIMATE

JUSTICE

Section 13901

Permanent Extension of

Tax Rate to Fund Black

Lung Disability Trust

Fundb

Permanently extends higher excise tax rates to fund the Black

Lung Disability Trust Fund on underground and surface coal

mines; prior to this change, these tax rates were temporary

1.159

—

—

Scott

Szymendera

Section 60103

GHG Reduction Fund

Provides funding to EPA for a new GHG Reduction Fund with

$7 billion to make competitive grants to states, municipalities,

tribal governments, and eligible recipients to provide financing

and technical assistance to enable low-income and disadvantaged

communities to deploy or benefit from zero-emission

technologies, including distributed technologies on residential

rooftops, and to carry out other GHG emission reduction

activities; $11.97 billion for general assistance; $8 billion for

low-income and disadvantaged communities; and $30 million for

EPA administrative costs

—

27.000

Grants

Richard

Lattanzio

Section 60106

Funding to Address Air

Pollution at Schools

Provides funding to EPA for grants and other activities to

monitor and reduce GHG emissions and other air pollutants at

schools in low-income and disadvantaged communities, and for

providing technical assistance to such schools

—

0.050

Grants and other

assistance

Richard

Lattanzio

CRS-21

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 60201

Environmental and

Climate Justice Block

Grants

Establishes an EPA grant program for community-based groups

and partnerships to reduce pollution and climate threats in

“disadvantaged communities”; these grants would provide

support for community-led priorities to reduce pollution,

improve public health and climate readiness, and facilitate

community engagement

—

3.000

Grants and technical

assistance

Angela Jones

Section 80001

Tribal Climate Resilience

Add funds to the Bureau of Indian Affairs (BIA) for tribal climate

resilience and adaptation programs, including for fish hatcheries

—

0.235

Various mechanisms

under BIA authorities

Mariel Murray

Section 80002

Native Hawaiian Climate

Resilience

Add funds to the Office of Native Hawaiian Relations for climate

resilience and adaptation activities that serve the Native

Hawaiian Community; funds can be distributed through financial

assistance, technical assistance, direct expenditure, grants,

contracts, or cooperative agreements

—

0.025

Various mechanisms

under BIA authorities

Mariel Murray

Section 80004

Emergency Drought

Relief for Tribes

Adds funds to the Bureau of Reclamation for near-term drought

relief actions to mitigate drought impacts for Indian tribes

affected by the operation of a Bureau of Reclamation water

project, including through direct financial assistance to address

drinking water shortages and to mitigate the loss of tribal trust

resources

—

0.001

Other agency activities

Charles Stern

CRS-22

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

AGRICULTURE,

FORESTRY, AND

LAND

CONSERVATION

Section 21001

Additional Agricultural

Conservation

Investments

Increases funding for Environmental Quality Incentives Program

($8.5 billion), a USDA voluntary conservation program that

provides farmers and ranchers with grants to implement

environmentally beneficial conservation practices; increases

funding for Conservation Stewardship Program ($3.25 billion), a

USDA voluntary conservation program that provides farmers

and ranchers with grants to maintain and improve existing

conservation practices, and adopt additional practices on

privately owned lands; increases funding for Agriculture

Conservation Easement Program ($1.4 billion), a USDA

program that purchases easements to protect, restore, and

enhance wetlands and working agricultural land; increases

funding for Regional Conservation Partnership Program ($4.95

billion), a USDA program that provides grants to partners to

deliver conservation assistance to landowners and producers to

restore and improve soil, water, and wildlife on a regional or

watershed scale

—

18.100

Grants

Megan Stubbs

Section 21002

Conservation Technical

Assistance

Provides funding to the Natural Resources Conservation

Service (NRCS) at USDA for conservation technical assistance

and for NRCS to carry out a program to quantify carbon

sequestration and carbon dioxide, methane, and nitrous oxide

emissions, to collect field-based data to assess the carbon

sequestration and GHG emission reduction outcomes of the

program, and to use the data to monitor and track those carbon

sequestration and emissions trends through the USDA GHG

Inventory and Assessment Program

—

1.400

Technical assistance

and data collection

Megan Stubbs

CRS-23

CBO Estimated

Revenue Effects

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Section Number and

Title

Overview of Climate-Related Provisions

Section 22003

Biofuel Infrastructure and

Agriculture Product

Market Expansion

Provides funding to USDA for grants to increase the sale and

use of agricultural commodity-based fuels through infrastructure

improvements for blending, storing, supplying, or distributing

biofuels

—

0.500

Grants

Kelsi Bracmort

Section 23001

National Forest System

Restoration and Fuels

Reduction Projects

Provides funding to USDA for National Forest Service

restoration, including hazardous fuels reduction, vegetation

management, and the protection of old-growth forests and

watersheds

—

2.150

Other agency activities

Anne Riddle

Section 23002

Competitive Grants for

Non-Federal Forest

Landowners

Provides funding to USDA to support (1) a grant program under

the Cooperative Forestry Assistance Act of 1978 to support

underserved landowners with climate mitigation or forest

resilience; and (2) the wood innovation grant program (pursuant

to §8643 of the Agriculture Improvement Act of 2018)

—

0.550

Grants

Anne Riddle

Section 23003

State and Private Forestry

Conservation Programs

Provides funding to USDA for tree planting and related activities

under the Urban and Community Forestry Program and

acquisition of lands and interests in lands to protect forests

threatened with conversion under the Forest Legacy Program

—

2.200

Grants

Anne Riddle

Section 50221

National Parks and Public

Lands Conservation and

Resilience

Provides funding to DOI for projects for conservation,

protection, and resiliency of lands and resources on lands

administered by the National Park Service and Bureau of Land

Management

—

0.250

Other agency activities

Laura Comay

CRS-24

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 50232

Canal Improvement

Projects

Provides funding to Bureau of Reclamation for design, study, and

implementation of projects to cover water conveyance facilities

with solar panels to generate renewable energy or for other

solar projects that increase water efficiency and assist in

implementation of clean energy goals

—

0.025

Other agency activities

Charles Stern

Section 50233

Drought Mitigation in the

Reclamation States

Adds funds for the Bureau of Reclamation for grants, contracts,

or financial assistance agreements to or with public entities and

Indian tribes, for activities to mitigate the impacts of drought in

the Reclamation States, with priority to the Colorado River

Basin and other basins experiencing comparable levels of longterm drought

—

4.000

Grants, contracts, or

financial assistance

Charles Stern

Section 60302

Funding for the United

States Fish and Wildlife

Service to Address

Weather Events

Adds funds for Fish and Wildlife Service for expenditures,

grants, and contracts and cooperative agreements for rebuilding

and restoring units of the National Wildlife Refuge System and

State wildlife management areas by addressing the threat of

invasive species; increasing the resiliency and capacity of habitats

and infrastructure to withstand weather events; and reducing

damage caused by weather events

—

0.125

Direct expenditures,

grants, contracts, and

cooperative

agreements

Pervaze Sheikh

CRS-25

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

CLIMATE

RESEARCH

Section 40001

Investing in Coastal

Communities and

Climate Resilience

Adds funds to the National Oceanic and Atmospheric

Administration (NOAA) to conserve, restore, and protect

coastal and marine habitats and resources, support natural

resources that sustain coastal and marine resource dependent

communities, and complete marine fishery and marine mammal

stock assessments

—

2.600

Direct expenditures,

contracts, grants,

cooperative

agreements, or

technical assistance

Eva Lipiec

Section 40004

Oceanic and Atmospheric

Research and Forecasting

for Weather and Climate

Adds funds to NOAA to accelerate advances and improvements

in research, observation systems, modeling, forecasting,

assessments, and dissemination of information to the public

related to weather, coasts, oceans, and climate; and for

competitive grants to fund climate research as it relates to

weather, ocean, coastal, and atmospheric processes and

conditions, and impacts to marine species and coastal habitat

—

0.200

Grants and research

Eva Lipiec

Section 40005

Computing Capacity and

Research for Weather,

Oceans, and Climate

Adds funds to NOAA to procure additional high-performance

computing, data processing capacity, data management, and

storage assets

—

0.190

Other agency activities

Eva Lipiec

Provides funding to DOE for national laboratory infrastructure

and general plant projects, of which: Office of Science: $1.55

billion, including high energy physics, fusion energy science,

nuclear physics projects, and basic energy sciences, among

others; Office of Fossil Energy and Carbon Management: $150

million; Office of Nuclear Energy: $150 million; Office of Energy

Efficiency and Renewable Energy: $150 million

—

2.000

Other agency activities

Corrie Clark

CROSS-CUTTING

Section 50172

National Laboratory

Infrastructure

CRS-26

CBO Estimated

Revenue Effects

Section Number and

Title

Overview of Climate-Related Provisions

Appropriationsa

$ Billions

Cumulative 20222031

$ Billions

Cumulative 20222031

Type of Federal

Assistance

CRS Contact

(for

Congressional

Clients)

Section 60111

Greenhouse Gas

Corporate Reporting

Provides funding to EPA to support enhanced standardization

and transparency of corporate climate action commitments and

plans to reduce GHG emissions; enhanced transparency

regarding progress toward meeting such commitments and

implementing such plans; and progress toward meeting such

commitments and implementing such plans

—

0.005

Other agency activities

Angela Jones

Section 60114

Climate Pollution

Reduction Grants

Provides funding ($250 million) to EPA to issue a grant to at

least one eligible entity (e.g., states, state agencies,

municipalities, Indian tribes) in each state to develop a plan for

GHG emission reduction; provides funding ($4.75 billion) to

EPA to issue grants to entities to implement their GHG

reduction plans

—

5.000

Grants

Jonathan

Ramseur

Sources: CRS analysis of P.L. 117-169; estimated revenue effects from Congressional Budget Office, “Estimated Budgetary Effects of H.R. 5376, the Inflation Reduction

Act of 2022, as Amended in the Nature of a Substitute (ERN22335) and Posted on the Website of the Senate Majority Leader on July 27, 2022,” revised August 5, 2022,

https://www.cbo.gov/publication/58366.

Notes: A “—” indicates no revenue effects or appropriations for this provision.

a. Appropriation amounts provided in this table are from the statutory text. For the budgetary effects of these provisions, see the “estimated outlays” provided in

Congressional Budget Office, “Estimated Budgetary Effects of H.R. 5376, the Inflation Reduction Act of 2022, as Amended in the Nature of a Substitute (ERN22335)

and Posted on the Website of the Senate Majority Leader on July 27, 2022,” revised August 5, 2022, https://www.cbo.gov/publication/58366.

b. See CRS Report R47202, Tax Provisions in the Inflation Reduction Act of 2022 (H.R. 5376), coordinated by Molly F. Sherlock.

c. See CRS Insight IN11984, Inflation Reduction Act of 2022 (IRA): Department of Energy Loan Guarantee Programs, by Phillip Brown.

d. See CRS Insight IN11981, Electricity Transmission Provisions in the Inflation Reduction Act of 2022, by Ashley J. Lawson.

e. See CRS Insight IN11980, Offshore Wind Provisions in the Inflation Reduction Act, by Laura B. Comay, Corrie E. Clark, and Molly F. Sherlock.

f.

In leasing offshore wind resources, the federal government collects certain proceeds, such as bid bonuses, rents, and royalties. Although this amount is listed as

“revenue” in this table, proceeds from such offshore leasing are treated as offsetting receipts, which are recorded in the federal budget as negative spending (i.e.,

reductions in federal spending).

g. See CRS Insight IN11996, Clean Vehicle Tax Credits in the Inflation Reduction Act of 2022, by Molly F. Sherlock.

h. See CRS Report R44692, Five-Year Offshore Oil and Gas Leasing Program: Status and Issues in Brief, by Laura B. Comay.

CRS-27

i.

j.

k.

l.

CRS-28

See CRS Report R47206, Inflation Reduction Act Methane Emissions Charge: In Brief, by Jonathan L. Ramseur.

In CBO’s cost estimate report, “estimated outlays” from this provision totaled $61 million between FY2022 and FY2031. Congressional Budget Office, “Estimated

Budgetary Effects of H.R. 5376, the Inflation Reduction Act of 2022, as Amended in the Nature of a Substitute (ERN22335) and Posted on the Website of the Senate

Majority Leader on July 27, 2022,” revised August 5, 2022, https://www.cbo.gov/publication/58366.

See CRS Report R43767, The Defense Production Act of 1950: History, Authorities, and Considerations for Congress, by Heidi M. Peters; and CRS Report R47124, 2022

Invocation of the Defense Production Act for Large-Capacity Batteries: In Brief, by Heidi M. Peters et al.

See White House, “FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing,” press release, June 6, 2022,

https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/06/fact-sheet-president-biden-takes-bold-executive-action-to-spur-domestic-clean-energymanufacturing/. In addition, explanatory documentation released by Senate Democrats describe this funding as allocated for DPA activities connected to heat pumps

and critical minerals mining; see Senate Democrats, “Summary of the Energy Security and Climate Change Investments in the Inflation Reduction Act of 2022,”

https://www.democrats.senate.gov/imo/media/doc/

summary_of_the_energy_security_and_climate_change_investments_in_the_inflation_reduction_act_of_2022.pdf.

Inflation Reduction Act of 2022 (IRA): Provisions Related to Climate Change

Author Information

Jonathan L. Ramseur, Coordinator

Specialist in Environmental Policy

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

shared staff to congressional committees and Members of Congress. It operates solely at the behest of and

under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not

subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in

its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or

material from a third party, you may need to obtain the permission of the copyright holder if you wish to

copy or otherwise use copyrighted material.

Congressional Research Service

R47262 · VERSION 3 · UPDATED

29

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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