Last week President Biden signed into law the “Inflation Reduction Act”, which is essentially a slimmed down adjunct bill to the “Build Back Better Act”. As the name implies, ,the goal would be to combat the crippling inflation facing the country currently – although most analysis by both CBO and federal groups has not concluded that would be the case in the long term. We shall see.
In the meantime, we pulled together some of the major industry-relevant items to keep an eye on
Federal analysis of the Inflation Reduction Act projects that the law will help cut United States emissions to 40% lower than 2005 levels by 2030. This aligns with the longer term goal of a net zero emission economy by 2050.
$370 billion dollars of the $740 billion dollars contained in the Inflation Reduction Act are directed toward addressing climate change, (including the potential cost of tax credits)
Among the points focused on are:
Of note is that most of the federal analysis seems to conclude that the emission reductions projected would require a heavy reliance on Carbon Capture & Store technology, which at the moment is a complicated and cost prohibitive solution in many situations.
As with any massive piece of legislation, its hard to predict how different provisions will impact industry segments until the rubber hits the road as they say. Definitely something to keep an eye on as it unfolds.
Stay Tuned!