The Inflation Reduction Act (IRA) signed into law this week is garnering headlines for its climate change measures – but it's not the only legislation that's going to have an impact on energy and environmental policies and programs, as well as ESG efforts.
The IRA is historic legislation that pushes $369B towards climate change solutions and creates unprecedented incentives and tax benefits to accelerate the transition to low and zero-carbon energy. And what's been relatively overlooked in recent coverage of the law is how it works in tandem with two other laws: the Creating Helpful Incentives to Produce Semiconductors ("CHIPS") for America Act and the Infrastructure Investment and Jobs Act (IIJA).
CHIPS authorizes up to $71B for the Departments of Commerce and Energy and the National Institute of Standards and Technology to institute a variety of programs, including the Regional Clean Energy Innovation Partnership, and award grants to public-private consortia that include industry or firms involved in technology, innovation, or manufacturing to "accelerate the pace of innovation of diverse clean energy technologies". The Department of Energy is authorized to support research, development, and the demonstration of renewable power, electric grid modernization and security, nuclear energy, alternative fuels, and carbon removal.
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