What in the world is—or was—the Inflation Reduction Act and what does it have to do with creating a better, cleaner energy and economic future for Pennsylvania? On Monday, Adrian Deveny, former Director of Energy and Environmental Policy for Senate Majority Leader Charles Schumer took on those questions in Mara Auditorium in Masters Hall at Gettysburg College. The event was co-hosted by the Environmental Studies, Public Policy, Philosophy, Economics, and Political Science departments at Gettysburg College and a number of community partners including the Gettysburg Green Gathering, the Green Gettysburg Book Club and Gettysburg Democracy for America.
Deveny began by commenting briefly on the overall impact of the Inflation Reduction Act (IRA) and then went on to tell the story of the complicated negotiations in the US Senate that led to its passage. The IRA, he said, is the largest and most expensive environmental legislation to pass through congress in American history, but partly because of its name, and partly because of its size and complexity, not everyone really understands what’s in it. Yet, the spending it has made possible has begun to shift America in a new direction in terms of energy and environmental infrastructure. The funding for investments in clean energy that the bill has unleased have begun a green revolution all across America and in Pennsylvania as well, Deveny said.
The bill was the product of two years of intense negotiations in Congress after two decades of failed attempts to pass ambitious climate change legislation. Some of the toughest of those negotiations were with Senator Joe Manchin of West Virginia who insisted on the elimination of measures unpopular with energy interests in his state. Manchin also demanded that the overall amount of spending be cut from the $1.7 trillion over ten years first proposed by the Biden administration. He was particularly anxious to eliminate spending that might contribute to inflation which happened to be peaking at a decisive moment during the negotiations.
These cuts, while essential for getting the bill through congress, have limited the overall impact of the legislation in terms of meeting the Biden administration’s goals for addressing climate change by reducing carbon emissions. This legislation, Deveny said, will get us part of the way there but “we still aren’t where the science says we need to be to ensure a stable climate. More work needs to be done.”
The Inflation Reduction Act, he continued, also includes spending for public health and education but investments in energy and the environment can be broken down into nine different areas. The largest is “Clean Electricity and Transmission Systems” which comprise 36% of spending. Second largest is “Industrial De-carbonization Incentives” at 14%; third largest is spending on “Agriculture Emission Reduction Incentives” which comes in at 9%. Other sections of the legislation call for spending on “clean” vehicles, energy efficient buildings, public transit upgrades, rural electric de-carbonization, “clean” technology deployment, and a “green bank” that will provide funding for a variety of locally-based projects. More of this funding, Deveny continued, is actually flowing to red states than to blue states. As more and more projects come on line, he said, it may become difficult for political leaders who voted against the bill to continue their opposition to its implementation.
In Pennsylvania, the Inflation Reduction Act has already had a significant impact, Deveny said. In Turtle Creek, Pennsylvania, the Eos Battery Plant received a $400 million Federal loan that, in turn, is unlocking $1.7 billion in private investments to take their production of long-duration batteries to scale. Over in York and Macungie (near Reading), Volvo and Harley Davidson are expanding their production of electric vehicles (including heavy trucks and an electric motorcycle) with a pair of grants.
Up in Clearfield County, federal funding is supporting a solar project build on former mine land that will generate enough electricity to power more than 70,000 homes and also generate $1.1 million in local tax revenue. In nearby Tioga County, the Painterland Family Farm, a multi-generational family farm, has used funding to implement climate-smart agricultural practices and launch an organic yogurt company.
Throughout the state, tax credits and rebates are available for up to a 30 percent discount on rooftop solar panels, electric vehicles, efficient heat pumps, and other equipment to help reduce energy bills and reduce pollution. Overall, Deveny concluded, about $7.4 billion in new clean energy investments are currently flowing into Pennsylvania creating thousands of new jobs for its residents.
Will Lane, a founding member of Green Gettysburg and the Green Gettysburg Book Club, is a Lecturer in English and Affiliated Faculty Member with Environmental Studies at Gettysburg College.