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

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/crs%3AR47262

## Record

- **Collection:** Congressional research report
- **Document type:** CRS Report
- **Published:** October 26, 2023
- **Citation:** R47262

## Text

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

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR47262. Public record. Not legal advice.
