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Unlocking historic climate funding from IRA and IIJA is critical to maximizing emissions reductions
CATF has launched its Implementation Resource Hub: Unlocking Funding for Climate Action to provide information and guidance for the deployment of the Inflation Reduction Act and Infrastructure Investment and Jobs Act-funded projects.
Just one year in, the Inflation Reduction Act (IRA) is delivering on its commitments to advance climate and clean energy technologies, building on the enormous funding investments from the Infrastructure Investment and Jobs Act (IIJA).
We’ve seen federal agencies establish new programs to distribute tremendous funding for the clean energy transition and states planning for deployment with unprecedented access to federal resources for clean energy solutions. The technology-neutral clean energy production and investment tax credits expanded by IRA and the new bonus credits alone are game-changing, providing developers and investors with greater financial certainty to invest in clean energy production in the U.S. These programs complement existing IIJA programs and new IRA programs alike to lower costs and incentivize the clean energy transition.
In short, IRA has already provided a strong foundation for deep emissions reductions in the U.S. and beyond.
Clean Air Task Force, Hard at Work
But there’s much more to do. That’s why CATF is working across the U.S. to drive IRA implementation. In Washington, CATF is working with federal agencies to deploy IRA resources effectively, and with policymakers to defend IRA funding and make sure the landmark law is carried out as enacted.
Across the U.S., we are working with state and local officials, as well as industry, community groups, and other stakeholders to access federal resources from IRA and maximize emissions reductions.
CATF is:
- Advising federal agencies on preferred methods for application processes, stakeholder engagement, and maximizing emissions reductions through tax credits and funding programs (see CATF’s guidance on tax credits here and the Methane Emissions Reduction Program (MERP) implementation here)
- Engaging with states and developing resources for states, local officials, and the private sector to access IRA resources (see CATF’s state resource for advanced clean trucks implementation here)
- Strategizing with the private sector on ways to use IRA resources to advance clean energy and low-carbon technologies (see CATF’s work here on hydrogen hubs and clean transportation corridors)
What’s Next
Federal funding is moving out to states and local communities right now! Yet, the necessary scale and pace of emission reductions is not guaranteed. Federal agencies must distribute an overwhelming level of resources following historically low staffing levels, with a new mission to accelerate the clean energy transition. Many federal applicants are seeking funding for the first time and are unfamiliar with federal grant and engagement processes. State governments lack sufficient staffing and capacity to track and take advantage of federal resources. Those looking to unlock funding need more support at the federal, state, and local levels to help projects succeed. For this reason, CATF has developed a resource hub to share resources and support projects as they deploy.
About CATF’s Resource Hub: Unlocking Historic Funding for Climate Action
This new resource hub tracks IIJA and IRA project announcements and awards in key sectors nationwide, and shares resources to decarbonize key sectors of the U.S. CATF will update the hub on a regular basis as new announcements are made.
Who it’s for:
State and local officials, project developers, companies, and communities can use these resources to track investments and leverage the historic levels of funding from IIJA and IRA, and learn how to decarbonize the key sectors driving U.S. emissions.
What it includes:
- A map of IRA and IIJA-funded projects
- Explainers of existing IRA and IIJA incentives, including guidance for states to unlock them
- Quick reads and deeper dives to demonstrate how to apply federal funding to achieve decarbonization goals, with factsheets, tools, blogs, research, and more from CATF technology and policy experts
How to use it:
- Visit the hub here or through our implementation landing page
- Explore the IIJA and IRA Project Tracker map to review the status of key projects
- Scroll down to find resources to help decarbonize key sectors: industry, power, transportation, and land
We are continuing to develop new resources, so check back frequently and sign up for updates.
Looking Ahead
There’s still more work to be done to implement these historic laws. We can look forward to:
- Federal agencies closely engaging with awardees to provide oversight and guidance, while developing new resources to help access available tax credits and funding.
- States continuing to build capacity and policies to support deployment and engaging with stakeholders to understand decarbonization priorities and opportunities.
- Projects beginning to move through the post-application grant process, engaging local communities, and reporting to federal agencies.
From Washington, D.C., to states and local communities, CATF is working to make sure IIJA and IRA incentives maximize emissions reductions and tangibly benefit states and local communities. We will continue to engage with states, communities, and other federal applicants to share resources and leverage federal funding to reduce emissions across multiple sectors.
If you have questions or want to engage, please contact our Policy Implementation Director Holly Reuter ([email protected]) or U.S. State Policy Director Jeremy Tarr ([email protected]).