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

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Inflation Reduction Act of 2022 (IRA):
October October 3, 202226, 2023
Provisions Related to Climate Change
Jane A. LeggettJonathan L. Ramseur,
On August 16, 2022, President Biden signed H.R. 5376 (P.L. 117-169), a budget On August 16, 2022, President Biden signed H.R. 5376 (P.L. 117-169), a budget
reconciliation Coordinator
reconciliation measure commonly referred to as the “Inflation Reduction Act of 2022” measure commonly referred to as the “Inflation Reduction Act of 2022”
Specialist in Energy and
(IRA). IRA contains (IRA). IRA contains Specialist in Environmental eight titles, each with some provisions that directly or indirectly eight titles, each with some provisions that directly or indirectly
Environmental Policy
address issues related to climate address issues related to climate Policy change, including reduction of U.S. greenhouse gas change, including reduction of U.S. greenhouse gas

(GHG) emissions or promotion of adaptation (GHG) emissions or promotion of adaptation and resilience to climate change impacts. and resilience to climate change impacts.
Jonathan L. Ramseur,
Coordinator

The funding and financial incentives of IRA The funding and financial incentives of IRA could promotepromote the deployment of low- and no-GHG emission technologies deployment of low- and no-
Specialist in Environmental
GHG emission technologies beyond what would otherwise occur (i.e., in a “business as
Policy
usual” baseline). This deployment would likely reduce or avoid some quantity of GHG . This deployment would likely reduce or avoid some quantity of GHG

emissions compared to baseline 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 beforeprojections. A number of recent analyses by researchers

generally estimate that under baseline conditions (i.e., without IRA), U.S. GHG IRA), U.S. GHG
emissions would decrease by emissions would decrease by 2425% to % to 3531% by 2030 compared to 2005 levels. The same % by 2030 compared to 2005 levels. The same analysesmodeling teams estimated estimated that the IRA provisions wouldthat
IRA could reduce U.S. GHG emissions by reduce U.S. GHG emissions by 3233% to 40% by 2030 compared to 2005 levels. The range of estimates % 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 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 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.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 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 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 implementation of the law, and state, local, and private responses to the financial incentives and provisions in
IRA. IRA.
This report identifies provisions of IRA related to climate change, with abbreviated information about their 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 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: to 2031. The provisions are organized by sectoral sources of GHG emissions:
electricity; electricity;
transportation; transportation;
fossil fuel resources; fossil fuel resources;
buildings and energy efficiency; buildings and energy efficiency;
manufacturing; manufacturing;
environment and climate justice; environment and climate justice;
agriculture, forestry, and land conservation; agriculture, forestry, and land conservation;
climate research; and climate research; and
cross-cutting. cross-cutting.
Congressional Research Service Congressional Research Service


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Contents
Background ..................................................................................................................................... 1

Tables
Table 1. Climate-Related Provisions in P.L. 117-169 ...................................................................... 4

Contacts
Author Information ........................................................................................................................ 29

Congressional Research Service 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 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 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 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 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 and resilience to climate change impacts. Some selected provisions in the eight titles are listed
below. below.
Title I—Committee on Finance includes provisions that modify, extend, or includes provisions that modify, extend, or
provide new tax credits for electricity from clean and renewable resources, provide new tax credits for electricity from clean and renewable resources,
alternative fuels and alternative fuel infrastructure, residential and commercial alternative fuels and alternative fuel infrastructure, residential and commercial
energy efficiency, advanced energy manufacturing, and clean vehicles, while energy efficiency, advanced energy manufacturing, and clean vehicles, while
reinstating or extending certain taxes on oil and coal. reinstating or extending certain taxes on oil and coal.
Title II—Committee on Agriculture, Nutrition, and Forestry includes includes
provisions that provide funding for the U.S. Department of Agriculture (USDA) provisions that provide funding for the U.S. Department of Agriculture (USDA)
for agriculture, forestry, and land conservation. for agriculture, forestry, and land conservation.
Title III—Committee on Banking, Housing, and Urban Affairs includes includes
provisions that provide funding to influence domestic industry to produce certain provisions that provide funding to influence domestic industry to produce certain
materials and goods for the national defense, and for projects to increase energy materials and goods for the national defense, and for projects to increase energy
or water efficiency of affordable housing. or water efficiency of affordable housing.
Title IV—Committee on Commerce, Science, and Transportation includes includes
provisions that provide funding for the National Oceanic and Atmospheric provisions that provide funding for the National Oceanic and Atmospheric
Administration (NOAA) for coastal communities, NOAA facilities, and weather Administration (NOAA) for coastal communities, NOAA facilities, and weather
research and forecasting; and for the Department of Transportation (DOT) for research and forecasting; and for the Department of Transportation (DOT) for
aviation fuels and low-emission aviation technologies. aviation fuels and low-emission aviation technologies.
Title V—Committee on Energy and Natural Resources includes provisions includes provisions
that provide funding for the Department of Energy (DOE) for energy rebates, that provide funding for the Department of Energy (DOE) for energy rebates,
building codes, energy efficiency, transmission of electricity, advanced and building codes, energy efficiency, transmission of electricity, advanced and
reduced-emission industrial facilities, and energy infrastructure, and loan reduced-emission industrial facilities, and energy infrastructure, and loan
programs for advanced vehicle manufacturing; provides funding for the programs for advanced vehicle manufacturing; provides funding for the
Department of the Interior (DOI) for conservation of lands and resources, Department of the Interior (DOI) for conservation of lands and resources,
drought preparedness, technical assistance to Insular Areas (i.e., American drought preparedness, technical assistance to Insular Areas (i.e., American
Samoa, Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Samoa, Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin
Islands), leasing for offshore wind energy development, and increased royalty Islands), leasing for offshore wind energy development, and increased royalty
rates for federal land and offshore oil and gas leases. rates for federal land and offshore oil and gas leases.
Title VI—Committee on Environment and Public Works includes provisions includes provisions
that provide funding to the Environmental Protection Agency (EPA) for a that provide funding to the Environmental Protection Agency (EPA) for a
Greenhouse Gas Reduction Fund, renewable fuels programs, environmental and Greenhouse Gas Reduction Fund, renewable fuels programs, environmental and
climate justice block grants, and more; provides funding to the Fish and Wildlife climate justice block grants, and more; provides funding to the Fish and Wildlife
Service for recovery plans for endangered and threatened species; and for Service for recovery plans for endangered and threatened species; and for
resilience and capacity of—and reducing damage to—habitats and infrastructure; resilience and capacity of—and reducing damage to—habitats and infrastructure;
provides funding to the Council on Environmental Quality for collecting data on provides funding to the Council on Environmental Quality for collecting data on
environmental and climate issues, including tracking disproportionate burdens environmental and climate issues, including tracking disproportionate burdens
and environmental impacts; provides funding to the Federal Highway 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 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, 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. , by Megan S. Lynch and James V. Saturno.
Congressional Research Service Congressional Research Service

1 1

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Administration (FHWA) and the General Services Administration (GSA) for Administration (FHWA) and the General Services Administration (GSA) for
transportation projects, environmental reviews, and use of low-carbon transportation projects, environmental reviews, and use of low-carbon
construction materials and products in federally funded transportation projects; construction materials and products in federally funded transportation projects;
and directs EPA to impose a charge on methane emissions from specific and directs EPA to impose a charge on methane emissions from specific
petroleum and natural gas system facilities. petroleum and natural gas system facilities.
Title VII—Committee on Homeland Security and Governmental Affairs
includes provisions that provide funding for several environmental programs, includes provisions that provide funding for several environmental programs,
including to the Department of Homeland of Security (DHS) to carry out including to the Department of Homeland of Security (DHS) to carry out
sustainability and environmental programs; the Federal Emergency Management sustainability and environmental programs; the Federal Emergency Management
Agency (FEMA) for low-carbon building materials and low- or no-emission 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 energy projects; and the U.S. Postal Service to purchase zero-emission vehicles
and related infrastructure. and related infrastructure.
Title VIII—Committee on Indian Affairs includes provisions that provide includes provisions that provide
funding for the Bureau of Indian Affairs (BIA) and Office of Native Hawaiian funding for the Bureau of Indian Affairs (BIA) and Office of Native Hawaiian
Relations for climate resilience and adaptation programs; and provides funding to Relations for climate resilience and adaptation programs; and provides funding to
the BIA for a tribal electrification program. the BIA for a tribal electrification program.
The funding and financial incentives of IRA The funding and financial incentives of IRA could promote increasedpromote deployment of low- and no- deployment of low- and no-
GHG emission GHG emission technologiestechnologies beyond what would otherwise occur (i.e., in a “business as usual”
baseline). This deployment would likely reduce or avoid some quantity of GHG emissions . This deployment would likely reduce or avoid some quantity of GHG emissions
compared to a baseline scenariocompared to a baseline scenario. A number of recent analyses by researchers generally estimate
(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 that under baseline conditions (i.e., federal, state, and local policies and practices in place before
IRA), U.S. GHG emissions would decrease by IRA), U.S. GHG emissions would decrease by 2425% to % to 3531% by 2030 compared to 2005 levels.2 % by 2030 compared to 2005 levels.2
The same The same analysesmodeling teams estimated that estimated that IRA couldthe IRA provisions would reduce U.S. GHG emissions by reduce U.S. GHG emissions by 3233% to 40% by 2030 % to 40% by 2030
compared to 2005 levels. The range of estimates from the baseline and IRA scenarios is due to 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 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 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. 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 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 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 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 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 other information regarding GHG emissions and other effects of the law are beyond the scope of
this report. this report.
Table 1 identifies climate-change-related provisions of IRA that are included in specific IRA 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 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 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 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 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 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. support climate or weather research, analysis, or policymaking.

2 For example, see Princeton University, Rapid Energy Policy Evaluation and Analysis Toolkit (REPEAT),
Preliminary Report: The Climate and Energy Impacts of the Inflation Reduction Act of 2022, August 4, 2022,
https://repeatproject.org/docs/REPEAT_IRA_Prelminary_Report_2022-08-04.pdf; Rhodium Group, A Turning Point
for US Climate Progress: Assessing the Climate and Clean Energy Provisions in the Inflation Reduction Act
, August
12, 2022, https://rhg.com/research/climate-clean-energy-inflation-reduction-act/; Energy Innovation, Modeling the
Inflation Reduction Act Using the Energy Policy Simulator
, August 1, 2022, https://energyinnovation.org/publication/
modeling-the-inflation-reduction-act-using-the-energy-policy-simulator/.
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 Congressional Research Service

2 2

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

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
mechanisms for applicable provisions. Funding mechanisms include grants, loans, and other mechanisms for applicable provisions. Funding mechanisms include grants, loans, and other
agency activities, the details of which are provided in the provision highlights column. 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 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 the table notes identify selected CRS products that offer further description of specific IRA
provisions and additional context. provisions and additional context.
The provisions are organized by sectoral sources of GHG emissions, compiling related and The provisions are organized by sectoral sources of GHG emissions, compiling related and
possibly interacting provisions from different titles. The table sections are possibly interacting provisions from different titles. The table sections are
electricity; electricity;
transportation; transportation;
fossil fuel resources; fossil fuel resources;
buildings and energy efficiency; buildings and energy efficiency;
manufacturing; manufacturing;
environment and climate justice; environment and climate justice;
agriculture, forestry, and land conservation; agriculture, forestry, and land conservation;
climate research; and climate research; and
cross-cutting. cross-cutting.
Congressional Research Service Congressional Research Service

3 3

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Table 1. Climate-Related Provisions in P.L. 117-169
CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
ELECTRICITY





Section 13101
Extends and modifies the production tax credit (PTC) for Extends and modifies the production tax credit (PTC) for
-51.062 -51.062
— —
— —
Mol y SherlockDonald Marples
Extension and Extension and
electricity produced from wind, biomass, geothermal, solar, electricity produced from wind, biomass, geothermal, solar,
Modification of Credit for Modification of Credit for
landfil gas, trash, qualified hydropower, and marine and landfil gas, trash, qualified hydropower, and marine and
Electricity Produced from Electricity Produced from
hydrokinetic resources; credit amounts depend in some cases hydrokinetic resources; credit amounts depend in some cases
Certain Renewable Certain Renewable
on meeting prevailing wage or apprenticeship requirements, on meeting prevailing wage or apprenticeship requirements,
Resour Resourcesb
domestic content requirements, or being located in an “energy domestic content requirements, or being located in an “energy
community” community”
Section 13102
Extends and modifies the energy investment tax credit (ITC) for Extends and modifies the energy investment tax credit (ITC) for
-13.962 -13.962
— —
— —
Mol y SherlockDonald Marples
Extension and Extension and
investments in certain energy property, such as solar, fuel cells, investments in certain energy property, such as solar, fuel cells,
Modification of Energy Modification of Energy
waste energy recovery, combined heat and power, small wind waste energy recovery, combined heat and power, small wind
Investment Tax Credi Investment Tax Creditb
property, microturbines, and geothermal heat pumps; expands property, microturbines, and geothermal heat pumps; expands
scope to include energy storage, qualified biogas properties, scope to include energy storage, qualified biogas properties,
electrochromic glass, and microgrid control ers, and electrochromic glass, and microgrid control ers, and
interconnection property; credit amounts depend in some cases interconnection property; credit amounts depend in some cases
on meeting prevailing wage or apprenticeship requirements, on meeting prevailing wage or apprenticeship requirements,
domestic content requirements, or being located in an “energy domestic content requirements, or being located in an “energy
community” community”
Section 13103
Allows allocation of “environmental justice solar and wind Allows allocation of “environmental justice solar and wind
Revenue effects Revenue effects
— —
— —
Mol y SherlockDonald Marples
Increase in Energy Credit Increase in Energy Credit
capacity” credits in 2023 and 2024 in addition to otherwise capacity” credits in 2023 and 2024 in addition to otherwise
included in Sections included in Sections
for Solar and Wind for Solar and Wind
allowed ITCs allowed ITCs
13101 and 13102 13101 and 13102
Facilities Placed in Service Facilities Placed in Service
in Connection with Low-in Connection with Low-
Income CommunitiIncome Communitiesb
CRS-4 CRS-4

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 13104
Extends and modifies the carbon oxide capture credit for Extends and modifies the carbon oxide capture credit for
-3.229 -3.229
— —
— —
Mol y SherlockDonald Marples
Extension and Extension and
industrial carbon capture or direct air capture (DAC) facilities; industrial carbon capture or direct air capture (DAC) facilities;
Modification of Credit for Modification of Credit for
increases the credit amount, with higher credit amounts for increases the credit amount, with higher credit amounts for
Carbon Oxide Carbon Oxide
DAC; reduces the threshold amount of carbon oxide that must DAC; reduces the threshold amount of carbon oxide that must
Sequestratio Sequestrationb
be captured at a qualifying facility, adding the restriction for be captured at a qualifying facility, adding the restriction for
electricity generating facilities that the property must be electricity generating facilities that the property must be
designed to capture not less than 75% of the baseline carbon designed to capture not less than 75% of the baseline carbon
oxide production or 60% for electricity generating facilities not oxide production or 60% for electricity generating facilities not
yet or recently placed into service; credit amounts depend in yet or recently placed into service; credit amounts depend in
some cases on meeting prevailing wage or apprenticeship some cases on meeting prevailing wage or apprenticeship
requirements requirements
Section 13105
Creates a new tax credit for qualifying nuclear power that Creates a new tax credit for qualifying nuclear power that
-30.001 -30.001
— —
— —
Mol y SherlockDonald Marples
Zero-Emission Nuclear Zero-Emission Nuclear
phases out as electricity prices rise; increased credit amounts phases out as electricity prices rise; increased credit amounts
Power Production Power Production
are available for taxpayers satisfying prevailing wage and are available for taxpayers satisfying prevailing wage and
Credi Creditb
apprenticeship requirements apprenticeship requirements
Section 13701
Creates a new production tax credit for sale of qualified Creates a new production tax credit for sale of qualified
-11.204 -11.204
— —
— —
Mol y SherlockDonald Marples
Clean Electricity Clean Electricity
domestically produced electricity with GHG emissions not domestically produced electricity with GHG emissions not
Production Credi Production Creditb
greater than zero; credit amounts depend in some cases on greater than zero; credit amounts depend in some cases on
meeting prevailing wage or apprenticeship requirements, meeting prevailing wage or apprenticeship requirements,
domestic content requirements, or being located in an “energy domestic content requirements, or being located in an “energy
community” community”
CRS-5 CRS-5

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 13702
Creates a new technology-neutral investment tax credit for Creates a new technology-neutral investment tax credit for
-50.858 -50.858
— —
— —
Mol y SherlockDonald Marples
Clean Electricity Clean Electricity
qualifying zero-emissions electricity generation facilities or qualifying zero-emissions electricity generation facilities or
Investment Credi Investment Creditb
energy storage technology, with credit rates determined by energy storage technology, with credit rates determined by
paying prevailing wage and meeting apprenticeship or domestic paying prevailing wage and meeting apprenticeship or domestic
content requirements, or in an energy community; allows for an content requirements, or in an energy community; allows for an
allocation for environmental justice solar and wind capacity allocation for environmental justice solar and wind capacity
credits in a low-income community or on Indian land credits in a low-income community or on Indian land
Section 13703
Allows cost recovery as a five-year property for facilities Allows cost recovery as a five-year property for facilities
-0.624 -0.624
— —
— —
Mol y SherlockDonald Marples
Cost Recovery for Cost Recovery for
qualifying for the clean electricity production or investment tax qualifying for the clean electricity production or investment tax
Qualified Facilities, Qualified Facilities,
credits credits
Qualified Property, and Qualified Property, and
Energy Storage Energy Storage
TechnoloTechnologyb
Section 22001
Provides funding to USDA for electric loans for renewable Provides funding to USDA for electric loans for renewable
— —
1.000 1.000
Direct loans Direct loans
Kelsi Bracmort Kelsi Bracmort
Additional Funding for Additional Funding for
energy under the Rural Electrification Act, including for projects energy under the Rural Electrification Act, including for projects

Electric Loans for Electric Loans for
that store electricity that store electricity
Renewable Energy Renewable Energy
Section 22002
Provides funding to USDA to support the Rural Energy for Provides funding to USDA to support the Rural Energy for
— —
2.025 2.025
Grants and direct loans Grants and direct loans
Kelsi Bracmort Kelsi Bracmort
Rural Energy for America Rural Energy for America
America Program (REAP), which provides grants for energy America Program (REAP), which provides grants for energy
Program Program
efficiency and renewable energy projects ($1.7 bil ion); provides efficiency and renewable energy projects ($1.7 bil ion); provides
funding for grants and loans for underutilized renewable energy funding for grants and loans for underutilized renewable energy
technologies and technical assistance with REAP applications technologies and technical assistance with REAP applications
($304 mil ion) ($304 mil ion)
CRS-6 CRS-6

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 22004
Provides funding to USDA to offer financial assistance (e.g., Provides funding to USDA to offer financial assistance (e.g.,
— —
9.700 9.700
Direct loans and other Direct loans and other
Kelsi Bracmort Kelsi Bracmort
USDA Assistance for USDA Assistance for
loans) to eligible entities for the long-term resiliency, reliability, loans) to eligible entities for the long-term resiliency, reliability,
assistance assistance
Rural Electric Rural Electric
and affordability of rural electric systems through the purchase and affordability of rural electric systems through the purchase
Cooperatives Cooperatives
of renewable energy, renewable energy systems, zero-emission of renewable energy, renewable energy systems, zero-emission
systems, carbon capture and storage systems, and more systems, carbon capture and storage systems, and more
Section 22005
Provides funding to USDA for administration and Provides funding to USDA for administration and
— —
0.100 0.100
Other agency activities Other agency activities
Kelsi Bracmort Kelsi Bracmort
Additional USDA Rural Additional USDA Rural
implementation of Sections 22001-22004, among other implementation of Sections 22001-22004, among other
Development Development
provisions provisions
Administrative Funds Administrative Funds
Section 50141
Increases loan guarantee commitment authority to $40 bil ion Increases loan guarantee commitment authority to $40 bil ion
— —
3.600 3.600
Loan guarantees Loan guarantees
Phil ip Brown Phil ip Brown
Funding for Department Funding for Department
for the Department of Energy (DOE) Title XVII Innovative for the Department of Energy (DOE) Title XVII Innovative
of Energy Loan Programs of Energy Loan Programs
Technology Loan Guarantee Program (§1703), supporting Technology Loan Guarantee Program (§1703), supporting
Offi Officec
eligible projects that avoid, reduce, utilize, or sequester air eligible projects that avoid, reduce, utilize, or sequester air
pol utants or anthropogenic GHG emissions, and—with the pol utants or anthropogenic GHG emissions, and—with the
exception of projects supported by a State Energy Financing exception of projects supported by a State Energy Financing
Institution—employ new or significantly improved technologies; Institution—employ new or significantly improved technologies;
provides funding to DOE to pay for loan guarantee costs and provides funding to DOE to pay for loan guarantee costs and
program administration program administration
CRS-7 CRS-7

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 50144
Creates a temporary loan guarantee authority of $250 bil ion Creates a temporary loan guarantee authority of $250 bil ion
— —
5.000 5.000
Loan guarantees Loan guarantees
Phil ip Brown Phil ip Brown
Energy Infrastructure Energy Infrastructure
for DOE under Title XVII of the Energy Policy Act of 2005 for DOE under Title XVII of the Energy Policy Act of 2005
Reinvestment Financingb Reinvestment Financingb
(§1706) for projects that (1) retool, repower, repurpose, or (§1706) for projects that (1) retool, repower, repurpose, or
replace energy infrastructure, subject to the requirement that replace energy infrastructure, subject to the requirement that
fossil fuel electricity generation projects must have controls to fossil fuel electricity generation projects must have controls to
avoid, reduce, utilize, or sequester air pol utants and avoid, reduce, utilize, or sequester air pol utants and
anthropogenic GHG emissions, or (2) enable operating anthropogenic GHG emissions, or (2) enable operating
infrastructure to avoid, reduce, utilize, or sequester air infrastructure to avoid, reduce, utilize, or sequester air
pol utants or anthropogenic GHG emissions; for the purpose of pol utants or anthropogenic GHG emissions; for the purpose of
this program, “energy infrastructure” means a facility and this program, “energy infrastructure” means a facility and
associated equipment used for (1) generation or transmission of associated equipment used for (1) generation or transmission of
electrical energy, or (2) production, processing, and delivery of electrical energy, or (2) production, processing, and delivery of
fossil fuels, fuels derived from petroleum, or petrochemical fossil fuels, fuels derived from petroleum, or petrochemical
feedstocks; provides funding to DOE to implement Section feedstocks; provides funding to DOE to implement Section
1706 activities 1706 activities
Section 50145
Permanently increases the Tribal Energy Loan Guarantee Permanently increases the Tribal Energy Loan Guarantee
— —
0.075 0.075
Loan guarantees Loan guarantees
Corrie Clark Corrie Clark
Tribal Energy Loan Tribal Energy Loan
Program lending authority to $20 bil ion and appropriates Program lending authority to $20 bil ion and appropriates
Guarantee Programb Guarantee Programb
money for program activities money for program activities
Section 50151
Creates a new direct loan program for development of certain Creates a new direct loan program for development of certain
— —
2.000 2.000
Direct loans Direct loans
Ashley Lawson Ashley Lawson
Transmission Facility Transmission Facility
transmission projects located in a National Interest Electric transmission projects located in a National Interest Electric
Financin Financingd
Transmission Corridor (NIETC), as designated by DOE; Transmission Corridor (NIETC), as designated by DOE;
NIETCs are to promote goals such as energy security or use of NIETCs are to promote goals such as energy security or use of
intermittent energy sources such as wind and solar intermittent energy sources such as wind and solar
Section 50152
Creates a new DOE grant program generally for state and local Creates a new DOE grant program generally for state and local
— —
0.760 0.760
Grants Grants
Ashley Lawson Ashley Lawson
Grants to Facilitate the Grants to Facilitate the
governments aimed at facilitating the siting of certain onshore governments aimed at facilitating the siting of certain onshore
Siting of Interstate Siting of Interstate
and offshore transmission lines, to cover project studies, host and offshore transmission lines, to cover project studies, host
Electricity Transmission Electricity Transmission
negotiations, participate in federal and state regulatory negotiations, participate in federal and state regulatory
Lin Linesd
proceedings, and promote economic development in affected proceedings, and promote economic development in affected
communities communities
CRS-8 CRS-8

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 50153
Provides new funding to DOE for interregional and offshore Provides new funding to DOE for interregional and offshore
— —
0.100 0.100
Planning, modeling, Planning, modeling,
Ashley Lawson Ashley Lawson
Interregional and Interregional and
wind electricity transmission planning, modeling, and analysis, wind electricity transmission planning, modeling, and analysis,
analysis, among others analysis, among others
Offshore Wind Electricity Offshore Wind Electricity
and stakeholder convening; may include planning for the effects and stakeholder convening; may include planning for the effects
Transmission Planning, Transmission Planning,
of weather changes due to climate change on the reliability and of weather changes due to climate change on the reliability and
Modeling, and Analysi Modeling, and Analysisd
resilience of the electric grid resilience of the electric grid
Section 50251
Authorizes DOI to issue offshore wind leases in portions of the Authorizes DOI to issue offshore wind leases in portions of the
0.16 0.160f
— —
— —
Laura Comay Laura Comay
Leasing on the Outer Leasing on the Outer
Mid- and South Atlantic and the Gulf of Mexico that had Mid- and South Atlantic and the Gulf of Mexico that had
Continental Shel Continental Shelfe
previously been withdrawn from leasing disposition through previously been withdrawn from leasing disposition through
2032; authorizes renewable energy leasing offshore of U.S. 2032; authorizes renewable energy leasing offshore of U.S.
territories and directs DOI to take steps to pursue offshore territories and directs DOI to take steps to pursue offshore
wind lease sales in these locations wind lease sales in these locations
Section 60107
Provides funds to EPA to support education, outreach, technical Provides funds to EPA to support education, outreach, technical
— —
0.087 0.087
Technical assistance, Technical assistance,
Jonathan Jonathan
Low Emissions Electricity Low Emissions Electricity
assistance, and/or partnerships to (1) consumers; (2) low- assistance, and/or partnerships to (1) consumers; (2) low-
outreach, and outreach, and
Ramseur Ramseur
Program Program
income and disadvantaged communities; (3) industries; and (4) income and disadvantaged communities; (3) industries; and (4)
partnerships partnerships
state, tribal, and local governments; directs EPA to assess within state, tribal, and local governments; directs EPA to assess within
one year of enactment the GHG emission reductions one year of enactment the GHG emission reductions
anticipated to result from changes in domestic electricity anticipated to result from changes in domestic electricity
generation and use each year through 2031 generation and use each year through 2031
Section 80003
Adds funds to BIA for zero-emission electricity systems for Adds funds to BIA for zero-emission electricity systems for
— —
0.150 0.150
Various mechanisms Various mechanisms
Mariel Murray Mariel Murray
Tribal Electrification Tribal Electrification
tribal homes, including associated home repairs and retrofitting tribal homes, including associated home repairs and retrofitting
under BIA authorities under BIA authorities
Program Program
CRS-9 CRS-9

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)





TRANSPORTATION
Section 13201
Extends existing tax credits for alternative fuels and alternative Extends existing tax credits for alternative fuels and alternative
-5.571 -5.571
— —
— —
Mol y SherlockNicholas Buffie
Extension of Incentives Extension of Incentives
fuel mixtures and biodiesel and renewable diesel fuel mixtures and biodiesel and renewable diesel
for Biodiesel, Renewable for Biodiesel, Renewable
Diesel and Alternative Diesel and Alternative
FuelFuelsb
Section 13202
Extends the existing second-generation biofuel producer tax Extends the existing second-generation biofuel producer tax
-0.054 -0.054
— —
— —
Mol y SherlockNicholas Buffie
Extension of Second Extension of Second
credit credit
Generation Biofuel Generation Biofuel
IncentiIncentivesb
Section 13203
Creates a new tax credit for the sale or mixture of sustainable Creates a new tax credit for the sale or mixture of sustainable
-0.049 -0.049
— —
— —
Mol y SherlockNicholas Buffie
Sustainable Aviation Fuel Sustainable Aviation Fuel
aviation fuel; credit amount is $1.25 per gallon with a aviation fuel; credit amount is $1.25 per gallon with a
Credi Creditb
supplemental credit amount of $0.01 per gallon for each supplemental credit amount of $0.01 per gallon for each
percentage point by which the lifecycle GHG emissions percentage point by which the lifecycle GHG emissions
reduction percentage for the fuel exceeds 50% reduction percentage for the fuel exceeds 50%
Section 13204
Creates a new tax credit for the qualified production of clean Creates a new tax credit for the qualified production of clean
-13.166 -13.166
— —
— —
Mol y SherlockNicholas Buffie
Clean H Clean Hydrogenb
hydrogen; the credit rate would be determined by the lifecycle hydrogen; the credit rate would be determined by the lifecycle
GHG emissions rate achieved in producing clean hydrogen, with GHG emissions rate achieved in producing clean hydrogen, with
higher credit amounts available when prevailing wage and higher credit amounts available when prevailing wage and
apprenticeship requirements are met apprenticeship requirements are met
CRS-10 CRS-10

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 13401
Extends and modifies vehicle tax credits; revised credit provides Extends and modifies vehicle tax credits; revised credit provides
-7.541 -7.541
— —
— —
Mol y SherlockNicholas Buffie
Clean Vehicle Credi Clean Vehicle Creditg
up to $7,500 for the purchase of fuel cell or eligible new plug-in up to $7,500 for the purchase of fuel cell or eligible new plug-in
electric vehicles meeting a critical minerals requirement and/or electric vehicles meeting a critical minerals requirement and/or
battery components requirement; the credit is disallowed for battery components requirement; the credit is disallowed for
certain higher-income taxpayers and is subject to vehicle price certain higher-income taxpayers and is subject to vehicle price
limits limits
Section 13402
Creates a new tax credit—$4,000, limited to 30% of the Creates a new tax credit—$4,000, limited to 30% of the
-1.347 -1.347
— —
— —
Mol y SherlockNicholas Buffie
Credit for Previously- Credit for Previously-
purchase price—for the purchase of previously owned plug-in purchase price—for the purchase of previously owned plug-in
Owned Clean Vehicl Owned Clean Vehiclesg
electric or fuel cell vehicles, subject to purchaser income and electric or fuel cell vehicles, subject to purchaser income and
vehicle price limits vehicle price limits
Section 13403
Creates a new tax credit for qualified commercial clean vehicles; Creates a new tax credit for qualified commercial clean vehicles;
-3.583 -3.583
— —
— —
Mol y SherlockNicholas Buffie
Qualified Commercial Qualified Commercial
credit amount varies by vehicle cost and weight credit amount varies by vehicle cost and weight
Clean Vehicl Clean Vehiclesg
Section 13404
Extends and modifies a tax credit for qualifying charging or Extends and modifies a tax credit for qualifying charging or
-1.738 -1.738
— —
— —
Mol y SherlockNicholas Buffie
Alternative Fuel Refueling Alternative Fuel Refueling
alternative fuel refueling property at a business or taxpayer’s alternative fuel refueling property at a business or taxpayer’s
Property Credi Property Creditb
principal residence; eligible charging or refueling property must principal residence; eligible charging or refueling property must
be placed in service within a low-income or rural census tract be placed in service within a low-income or rural census tract
Section 13704
Creates a new tax credit for domestic clean fuel production, Creates a new tax credit for domestic clean fuel production,
-2.946 -2.946
— —
— —
Mol y SherlockNicholas Buffie
Clean Fuel Production Clean Fuel Production
depending on the type of fuel (aviation or nonaviation), the CO2 depending on the type of fuel (aviation or nonaviation), the CO2
Credi Creditb
emissions rate of the fuel, and the producer’s labor practices emissions rate of the fuel, and the producer’s labor practices
CRS-11 CRS-11

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 40007
Creates a competitive grant program in DOT for sustainable Creates a competitive grant program in DOT for sustainable
— —
0.297 0.297
Grants Grants
Kelsi Bracmort Kelsi Bracmort
Alternative Fuel and Low- Alternative Fuel and Low-
aviation fuel (SAF) and low-emission aviation technologies; aviation fuel (SAF) and low-emission aviation technologies;
Emission Aviation Emission Aviation
financial assistance is for the production, transportation, financial assistance is for the production, transportation,
Technology Program Technology Program
blending, and storage of SAF as well as for projects related to blending, and storage of SAF as well as for projects related to
low-emission aviation technologies, among other things; SAF is low-emission aviation technologies, among other things; SAF is
defined as achieving at least a 50% lifecycle greenhouse gas defined as achieving at least a 50% lifecycle greenhouse gas
emission reduction in comparison with petroleum-based jet fuel emission reduction in comparison with petroleum-based jet fuel
Section 60101
Creates EPA program to provide grants and rebates to eligible Creates EPA program to provide grants and rebates to eligible
— —
1.000 1.000
Grants and rebates Grants and rebates
Richard Richard
Clean Heavy-Duty Clean Heavy-Duty
recipients (a state, municipality, Indian tribe, or nonprofit school recipients (a state, municipality, Indian tribe, or nonprofit school
Lattanzio Lattanzio
Vehicles Vehicles
transportation association) or eligible contractors for the transportation association) or eligible contractors for the
incremental costs of replacing eligible vehicles with zero-incremental costs of replacing eligible vehicles with zero-
emission vehicles, for associated infrastructure and workforce emission vehicles, for associated infrastructure and workforce
development and training, and planning and technical activities; development and training, and planning and technical activities;
includes $400 mil ion for recipients that propose to replace includes $400 mil ion for recipients that propose to replace
eligible vehicles to serve one or more communities in air eligible vehicles to serve one or more communities in air
pol ution nonattainment areas pol ution nonattainment areas
Section 60102
Creates EPA program to provide grants and rebates to Creates EPA program to provide grants and rebates to
— —
3.000 3.000
Grants and rebates Grants and rebates
Richard Richard
Grants to Reduce Air Grants to Reduce Air
purchase or install zero-emission port equipment or technology purchase or install zero-emission port equipment or technology
Lattanzio Lattanzio
Pol ution at Ports Pol ution at Ports
at or to serve ports, for connected planning or permitting, and at or to serve ports, for connected planning or permitting, and
“to develop qualified climate action plans”; of rebates and “to develop qualified climate action plans”; of rebates and
grants, $750 mil ion is for activities with respect to ports in air grants, $750 mil ion is for activities with respect to ports in air
pol ution nonattainment areas pol ution nonattainment areas
Section 60105
Provides funding ($20 mil ion) to EPA for grants and other Provides funding ($20 mil ion) to EPA for grants and other
— —
0.025 0.025
Grants and other Grants and other
Richard Richard
Funding to Address Air Funding to Address Air
activities to monitor methane emissions (§60105(e)); provides activities to monitor methane emissions (§60105(e)); provides
authorized activities authorized activities
Lattanzio Lattanzio
Pol ution Pol ution
funding ($5 mil ion) to EPA for grants to states to adopt and funding ($5 mil ion) to EPA for grants to states to adopt and
implement GHG and zero-emission standards for mobile implement GHG and zero-emission standards for mobile
sources (§60105(g)) sources (§60105(g))
CRS-12 CRS-12

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 60108
Provides funding to EPA to carry out the Renewable Fuel Provides funding to EPA to carry out the Renewable Fuel
— —
0.015 0.015
Grants, analysis, and Grants, analysis, and
Kelsi Bracmort Kelsi Bracmort
Funding for Section Funding for Section
Standard program, in part, for data col ection and analyses for Standard program, in part, for data col ection and analyses for
data col ection data col ection
211(O) of the Clean Air 211(O) of the Clean Air
lifecycle greenhouse gas emissions of a fuel ($5 mil ion); lifecycle greenhouse gas emissions of a fuel ($5 mil ion);

Act Act
provides funding for new grants to support investment in provides funding for new grants to support investment in
advanced biofuels ($10 mil ion) advanced biofuels ($10 mil ion)
Section 60501
Provides funding to the Federal Highway Administration Provides funding to the Federal Highway Administration
— —
3.205 3.205
Grants Grants
Robert Kirk Robert Kirk
Neighborhood Access Neighborhood Access
(FHWA) for competitive grants to support projects to improve (FHWA) for competitive grants to support projects to improve
and Equity Grants and Equity Grants
walkability, safety, and affordable transportation access; to walkability, safety, and affordable transportation access; to
Program Program
mitigate or remediate negative impacts from a surface mitigate or remediate negative impacts from a surface
transportation facility, such as those that create an obstacle to transportation facility, such as those that create an obstacle to
community connectivity; and for planning and capacity building community connectivity; and for planning and capacity building
activities in disadvantaged or underserved communities activities in disadvantaged or underserved communities
Section 60506
Provides funding to FHWA to reimburse incremental costs or Provides funding to FHWA to reimburse incremental costs or
— —
2.000 2.000
Reimbursements or Reimbursements or
Robert Kirk Robert Kirk
Low-Carbon Low-Carbon
provide incentives to eligible recipients for use in projects of provide incentives to eligible recipients for use in projects of
incentives incentives

Transportation Materials Transportation Materials
construction materials with substantially lower embodied GHG construction materials with substantially lower embodied GHG

Grants Grants
emissions, as determined by EPA (see §60116) and reviewed by emissions, as determined by EPA (see §60116) and reviewed by
FHWA for appropriate use FHWA for appropriate use


Section 70002
Provides funding to the U.S. Postal Service to purchase zero- Provides funding to the U.S. Postal Service to purchase zero-
— —
3.000 3.000
Other agency activities Other agency activities
Melissa Diaz Melissa Diaz
United States Postal United States Postal
emission delivery vehicles ($1.290 bil ion) and for purchase, emission delivery vehicles ($1.290 bil ion) and for purchase,
Service Clean Fleets Service Clean Fleets
design, and installation of related infrastructure leases from design, and installation of related infrastructure leases from
nonfederal entities ($1.710 bil ion) nonfederal entities ($1.710 bil ion)
CRS-13 CRS-13

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
FOSSIL FUEL





RESOURCES
Section 50261
Increases the minimum royalty rate for new offshore fossil fuel Increases the minimum royalty rate for new offshore fossil fuel
0.48 0.484f
— —
— —
Laura Comay Laura Comay
Offshore Oil and Gas Offshore Oil and Gas
leases from 12.5% to 16.6%; sets a maximum royalty rate of leases from 12.5% to 16.6%; sets a maximum royalty rate of
(total estimate for (total estimate for
Royalty Rate Royalty Rate
18.8% for new offshore oil and gas leases for 10 years 18.8% for new offshore oil and gas leases for 10 years
§§50261-50265) §§50261-50265)

Section 50262
Increases the minimum royalty rate for new onshore fossil fuel Increases the minimum royalty rate for new onshore fossil fuel
0.48 0.484f
— —
— —
Laura Comay Laura Comay
Mineral Leasing Act Mineral Leasing Act
leases from 12.5% to 16.6%; eliminates noncompetitive leasing, leases from 12.5% to 16.6%; eliminates noncompetitive leasing,
(total estimate for (total estimate for
Modernization Modernization
adjusts rental rates, and establishes a higher minimum bid on adjusts rental rates, and establishes a higher minimum bid on
§§50261-50265) §§50261-50265)
federal leases federal leases

Section 50263
Modifies the scope of royalty col ection for natural gas Modifies the scope of royalty col ection for natural gas
0.48 0.484f
— —
— —
Laura Comay Laura Comay
Royalties on All Extracted Royalties on All Extracted
produced on federal land or the outer continental shelf to produced on federal land or the outer continental shelf to
(total estimate for (total estimate for
Methane Methane
include “gas that is consumed or lost by venting, flaring, or include “gas that is consumed or lost by venting, flaring, or
§§50261-50265) §§50261-50265)
negligent releases through any equipment during upstream negligent releases through any equipment during upstream
operations,” with certain exceptions operations,” with certain exceptions

Section 50264
Requires DOI to conduct three offshore oil and gas lease sales Requires DOI to conduct three offshore oil and gas lease sales
0.48 0.484f
— —
— —
Laura Comay Laura Comay
Lease Sales Under the Lease Sales Under the
that had been canceled under the 2017-2022 five-year offshore that had been canceled under the 2017-2022 five-year offshore
(total estimate for (total estimate for
2017-2022 Outer 2017-2022 Outer
oil and gas leasing program; specifies dates by which each sale oil and gas leasing program; specifies dates by which each sale
§§50261-50265) §§50261-50265)
Continental Shelf Leasing Continental Shelf Leasing
must be conducted; requires DOI to issue leases from Gulf of must be conducted; requires DOI to issue leases from Gulf of

Program Program
Mexico Lease Sale 257, which was conducted in November Mexico Lease Sale 257, which was conducted in November
2021 but was later vacated by a court ruling 2021 but was later vacated by a court ruling
CRS-14 CRS-14

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 50265
Requires DOI to conduct oil and gas lease sales each year for a Requires DOI to conduct oil and gas lease sales each year for a
0.48 0.484f
— —
— —
Laura Comay Laura Comay
Ensuring Energy Securi Ensuring Energy Securityh
decade as a prerequisite to issuing leases or rights-of-way for decade as a prerequisite to issuing leases or rights-of-way for
(total estimate for (total estimate for
any new solar or wind energy; without offering minimum parcels any new solar or wind energy; without offering minimum parcels
§§50261-50265) §§50261-50265)
for fossil fuel leasing, the federal government would not have for fossil fuel leasing, the federal government would not have
the authority to approve utility-scale renewable energy projects the authority to approve utility-scale renewable energy projects

on public lands or waters on public lands or waters
Section 60113
Establishes a methane emissions charge (fee) that applies to Establishes a methane emissions charge (fee) that applies to
6.350 6.350
1.550 1.550
Grants Grants
Jonathan Jonathan
Methane Emissions Methane Emissions
specific types of petroleum and natural gas system facilities; specific types of petroleum and natural gas system facilities;
Ramseur Ramseur
Reduction Progr Reduction Programi
charge based on emissions reported to EPA and an emissions charge based on emissions reported to EPA and an emissions
threshold that varies by facility type; appropriates $850 mil ion threshold that varies by facility type; appropriates $850 mil ion
to EPA to provide grants to these facilities to help reduce their to EPA to provide grants to these facilities to help reduce their
methane emissions; appropriates $700 mil ion to EPA to methane emissions; appropriates $700 mil ion to EPA to
support similar activities at “marginal conventional wells” support similar activities at “marginal conventional wells”
BUILDINGS AND





ENERGY
EFFICIENCY

Section 13301
Extends and modifies the tax credit for qualified energy Extends and modifies the tax credit for qualified energy
-12.451 -12.451
— —
— —
Mol y SherlockNicholas Buffie
Extension, Increase, and Extension, Increase, and
efficiency improvements made to a taxpayer’s residence; efficiency improvements made to a taxpayer’s residence;
Modifications of Modifications of
increases the credit rates, and modifies energy efficiency increases the credit rates, and modifies energy efficiency
Nonbusiness Energy Nonbusiness Energy
standards over time; expands credit to include home energy standards over time; expands credit to include home energy
Property Credi Property Creditb
audits audits
Section 13302
Extends and modifies tax credit for purchase of residential solar Extends and modifies tax credit for purchase of residential solar
-22.022 -22.022
— —
— —
Mol y SherlockNicholas Buffie
Residential Clean Residential Clean
electric property, solar water heating property, fuel cells, electric property, solar water heating property, fuel cells,
Electricity Credi Electricity Creditb
geothermal heat pump property, small wind energy property, geothermal heat pump property, small wind energy property,
and qualified biomass fuel property; adds qualified battery and qualified biomass fuel property; adds qualified battery
storage technology storage technology
CRS-15 CRS-15

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 13303
Updates energy efficiency requirements to qualify for the tax Updates energy efficiency requirements to qualify for the tax
-0.362 -0.362
— —
— —
Mol y SherlockNicholas Buffie
Energy Efficient Energy Efficient
deduction for certain energy-saving commercial building deduction for certain energy-saving commercial building
Commercial Buildings Commercial Buildings
property installed as part of the (1) interior lighting system; (2) property installed as part of the (1) interior lighting system; (2)
Deductio Deductionb
heating, cooling, ventilation, or hot water system; or (3) building heating, cooling, ventilation, or hot water system; or (3) building
envelope; deduction amount depends on meeting requirements envelope; deduction amount depends on meeting requirements
for prevailing wage and apprenticeship requirements; al ows a for prevailing wage and apprenticeship requirements; al ows a
tax-exempt entity to allocate the deduction to the designer of tax-exempt entity to allocate the deduction to the designer of
the building or retrofit plan the building or retrofit plan
Section 13304
Extends and modifies the energy efficient new home credit; Extends and modifies the energy efficient new home credit;
-2.043 -2.043
— —
— —
Mol y SherlockNicholas Buffie
Extension, Increase, and Extension, Increase, and
increases the credit amount and provides a larger credit if increases the credit amount and provides a larger credit if
Modifications of New Modifications of New
prevailing wage and apprenticeship requirements are met; al ows prevailing wage and apprenticeship requirements are met; al ows
Energy Efficient Home Energy Efficient Home
credit for low-income housing tax credit recipients credit for low-income housing tax credit recipients
Credi Creditb
Section 30002
Provides funding to the Department of Housing and Urban Provides funding to the Department of Housing and Urban
— —
1.000 1.000
Loans, loan Loans, loan
Maggie McCarty Maggie McCarty
Improving Energy Improving Energy
Development (HUD) for loans, loan modifications, and grants to Development (HUD) for loans, loan modifications, and grants to
modifications, and modifications, and
Libby Perl Libby Perl
Efficiency or Water Efficiency or Water
finance projects in existing HUD-funded multifamily housing finance projects in existing HUD-funded multifamily housing
grants grants
Efficiency or Climate Efficiency or Climate
developments that improve energy or water efficiency, enhance developments that improve energy or water efficiency, enhance
Resilience of Affordable Resilience of Affordable
indoor air quality or sustainability, implement the use of zero- indoor air quality or sustainability, implement the use of zero-
Housing Housing
emission electricity generation, low-emission building materials emission electricity generation, low-emission building materials
or processes, energy storage, or building electrification or processes, energy storage, or building electrification
strategies, or address climate resilience; provides direct loan strategies, or address climate resilience; provides direct loan
authority not to exceed $4 bil ion authority not to exceed $4 bil ion
Section 50121
Provides funding to DOE for state energy offices ($4.3 bil ion) Provides funding to DOE for state energy offices ($4.3 bil ion)
— —
4.300 4.300
Grants Grants
Corrie Clark Corrie Clark
Home Energy Home Energy
to develop and implement a rebate program to homeowners to develop and implement a rebate program to homeowners
Performance-Based, Performance-Based,
and aggregators for whole-house energy saving retrofits and aggregators for whole-house energy saving retrofits
Whole-House Rebates Whole-House Rebates
CRS-16 CRS-16

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 50122
Provides funding to DOE for state energy offices ($4.275 bil ion) Provides funding to DOE for state energy offices ($4.275 bil ion)
— —
4.500 4.500
Grants Grants
Corrie Clark Corrie Clark
High-Efficiency Electric High-Efficiency Electric
and Indian tribes ($225 mil ion) to develop and operate high- and Indian tribes ($225 mil ion) to develop and operate high-
Home Rebate Program Home Rebate Program
efficiency electric home rebate programs for appliance and efficiency electric home rebate programs for appliance and
nonappliance upgrades nonappliance upgrades
Section 50123
Provides funding to DOE for states to establish programs Provides funding to DOE for states to establish programs
— —
0.200 0.200
Financial assistance Financial assistance
Corrie Clark Corrie Clark
State-Based Home Energy State-Based Home Energy
providing training and education to contractors who install providing training and education to contractors who install
Efficiency Contractor Efficiency Contractor
home energy efficiency and electrification improvements home energy efficiency and electrification improvements
Training Grants Training Grants
Section 50131
Provides funding to DOE for grants to state and local Provides funding to DOE for grants to state and local
— —
1.000 1.000
Grants Grants
Corrie Clark Corrie Clark
Assistance for Latest and Assistance for Latest and
governments (1) to adopt the latest residential or commercial governments (1) to adopt the latest residential or commercial
Zero Building Energy Zero Building Energy
building energy codes and implement a plan to achieve ful building energy codes and implement a plan to achieve ful
Code Adoption Code Adoption
compliance with codes ($330 mil ion), and (2) to adopt compliance with codes ($330 mil ion), and (2) to adopt
residential or commercial building energy codes that meet or residential or commercial building energy codes that meet or
exceed the zero energy provisions of the 2021 International exceed the zero energy provisions of the 2021 International
Energy Conservation Code or equivalent stretch code and Energy Conservation Code or equivalent stretch code and
implement a plan to achieve ful compliance with codes ($670 implement a plan to achieve ful compliance with codes ($670
mil ion) mil ion)
Section 60502
Provides funding to the General Services Administration (GSA) Provides funding to the General Services Administration (GSA)
— —
0.250 0.250
Other agency activities Other agency activities
Garrett Hatch Garrett Hatch
Assistance for Federal Assistance for Federal
for the Federal Buildings Fund, to convert GSA facilities to high- for the Federal Buildings Fund, to convert GSA facilities to high-
Buildings Buildings
performance green buildings performance green buildings
Section 60503
Provides funding to GSA to acquire and install materials that Provides funding to GSA to acquire and install materials that
— —
2.150 2.150
Other agency activities Other agency activities
Garrett Hatch Garrett Hatch
Use of Low-Carbon Use of Low-Carbon
have substantially lower levels of embodied GHGs as have substantially lower levels of embodied GHGs as
Materials Materials
determined by EPA (see §60501), for use in construction or determined by EPA (see §60501), for use in construction or
alteration of GSA buildings alteration of GSA buildings
CRS-17 CRS-17

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 60504
Provides funding to GSA’s Federal Buildings Fund for emerging Provides funding to GSA’s Federal Buildings Fund for emerging
— —
0.975 0.975
Other agency activities Other agency activities
Garrett Hatch Garrett Hatch
General Services General Services
and sustainable technologies, and related sustainability and and sustainable technologies, and related sustainability and
Administration Emerging Administration Emerging
environmental programs environmental programs
Technologies Technologies
Section 70006
Allows the Federal Emergency Management Agency (FEMA) to Allows the Federal Emergency Management Agency (FEMA) to
— —
—j
Financial assistance Financial assistance
Diane Horn Diane Horn
FEMA Building Materials FEMA Building Materials
provide financial assistance for hazard mitigation under the provide financial assistance for hazard mitigation under the
Program Program
Robert T. Stafford Disaster Relief and Emergency Assistance Robert T. Stafford Disaster Relief and Emergency Assistance
Act for costs of low-carbon materials and incentives for low-Act for costs of low-carbon materials and incentives for low-
carbon and net-zero energy projects carbon and net-zero energy projects

MANUFACTURING





Section 13501
Provides $10 mil ion in allocations of a tax credit for qualifying Provides $10 mil ion in allocations of a tax credit for qualifying
-6.255 -6.255
— —
— —
Mol y SherlockDonald Marples
Extension of the Extension of the
investments in advanced energy projects, with at least $4 bil ion investments in advanced energy projects, with at least $4 bil ion
Advanced Energy Project Advanced Energy Project
for “energy communities”; Secretary of the Treasury is to for “energy communities”; Secretary of the Treasury is to
Credi Creditb
establish a program to award credits to project sponsors; credit establish a program to award credits to project sponsors; credit
rate depends on whether a project pays prevailing wages and rate depends on whether a project pays prevailing wages and
meets apprenticeship requirements meets apprenticeship requirements
Section 13502
Creates a new production tax credit for domestic production Creates a new production tax credit for domestic production
-30.632 -30.632
— —
— —
Mol y SherlockDonald Marples
Advanced Manufacturing Advanced Manufacturing
and sale of qualifying solar and wind components and sale of qualifying solar and wind components
Production Credi Production Creditb
CRS-18 CRS-18

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 30001
Provides funding to carry out activities under the Defense Provides funding to carry out activities under the Defense
— —
0.500 0.500
Other agency activities Other agency activities
Heidi Peters Heidi Peters
Enhanced Use of the Enhanced Use of the
Production Act of 1950 (DPA); on March 31, 2022, and June 6, Production Act of 1950 (DPA); on March 31, 2022, and June 6,
Defense Production Ac Defense Production Actk
2022, President Biden invoked the DPA to accelerate domestic 2022, President Biden invoked the DPA to accelerate domestic
production of clean energy technologies, including large-capacity production of clean energy technologies, including large-capacity
batteries, solar panel components, and heat pumps, among batteries, solar panel components, and heat pumps, among
otherothersl
Section 50142
Provides funding to DOE for costs of loans for equipping, Provides funding to DOE for costs of loans for equipping,
— —
3.025 3.025
Direct loans Direct loans
Melissa Diaz Melissa Diaz
Advanced Technology Advanced Technology
expanding, or establishing manufacturing facilities in the United expanding, or establishing manufacturing facilities in the United
Vehicle Manufacturing Vehicle Manufacturing
States to produce, or for engineering integration performed in States to produce, or for engineering integration performed in
the United States of, advanced technology vehicles that emit, the United States of, advanced technology vehicles that emit,
under any possible operational mode or condition, low- or under any possible operational mode or condition, low- or
zero-GHG emissions; eliminates previous loan program cap of zero-GHG emissions; eliminates previous loan program cap of
$25 bil ion $25 bil ion
Section 50143
Provides funding to DOE for grants for domestic production of Provides funding to DOE for grants for domestic production of
— —
2.000 2.000
Grants Grants
Melissa Diaz Melissa Diaz
Domestic Manufacturing Domestic Manufacturing
efficient hybrid, plug-in electric hybrid, plug-in electric drive, and efficient hybrid, plug-in electric hybrid, plug-in electric drive, and
Conversion Grants Conversion Grants
hydrogen fuel cell electric vehicles, and administrative costs of hydrogen fuel cell electric vehicles, and administrative costs of
making grants making grants
Section 50161
Provides funding to DOE for financial assistance for clean energy Provides funding to DOE for financial assistance for clean energy
— —
5.812 5.812
Grant, rebate, direct Grant, rebate, direct
Corrie Clark Corrie Clark
Advanced Industrial Advanced Industrial
demonstrations by eligible facilities, with priority to projects to demonstrations by eligible facilities, with priority to projects to
loan, or cooperative loan, or cooperative
Facilities Deployment Facilities Deployment
achieve GHG reductions, provide the greatest benefit for the achieve GHG reductions, provide the greatest benefit for the
agreement agreement
Program Program
greatest number of people in the area, and participate in a greatest number of people in the area, and participate in a
partnership with purchasers of the facility’s output partnership with purchasers of the facility’s output
Section 60109
Provides funding to EPA to implement provisions to reduce Provides funding to EPA to implement provisions to reduce
— —
0.039 0.039
Grants Grants
Richard Richard
Funding for Funding for
hydrofluorocarbons (HFCs) under the American Innovation and hydrofluorocarbons (HFCs) under the American Innovation and
Lattanzio Lattanzio
Implementation of the Implementation of the
Manufacturing Act, including $20 mil ion for general Manufacturing Act, including $20 mil ion for general
American Innovation and American Innovation and
implementation, $3.5 mil ion to deploy new implementation and implementation, $3.5 mil ion to deploy new implementation and
Manufacturing Act Manufacturing Act
compliance tools, and $15 mil ion for competitive grants for compliance tools, and $15 mil ion for competitive grants for
“reclaim and innovative destruction technologies” “reclaim and innovative destruction technologies”
CRS-19 CRS-19

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 60112
Provides funding to EPA to develop and carry out a program to Provides funding to EPA to develop and carry out a program to
— —
0.250 0.250
Grants and technical Grants and technical
Richard Richard
Environmental Product Environmental Product
support development, enhanced standardization and support development, enhanced standardization and
assistance assistance
Lattanzio Lattanzio
Declaration Assistance Declaration Assistance
transparency, and reporting criteria for environmental product transparency, and reporting criteria for environmental product
declarations that include measurements of the embodied GHG declarations that include measurements of the embodied GHG
emissions of the material or product associated with all relevant emissions of the material or product associated with all relevant
stages of production, use, and disposal, and conformance with stages of production, use, and disposal, and conformance with
international standards, for construction materials and products international standards, for construction materials and products
(see also §60106); includes grants and technical assistance to (see also §60106); includes grants and technical assistance to
manufacturers of construction materials and to states, tribes, manufacturers of construction materials and to states, tribes,
and nonprofit organizations that assist such manufacturers; and and nonprofit organizations that assist such manufacturers; and
other activities other activities
Section 60116
Provides funding to EPA to develop a program that identifies Provides funding to EPA to develop a program that identifies
— —
0.100 0.100
Other agency activities Other agency activities
Richard Richard
Low-Embodied Carbon Low-Embodied Carbon
and labels construction materials with substantially lower levels and labels construction materials with substantially lower levels
Lattanzio Lattanzio
Labeling for Construction Labeling for Construction
of embodied GHG emissions compared to industry averages, in of embodied GHG emissions compared to industry averages, in
Materials Materials
consultation with the Federal Highway Administration (FHWA) consultation with the Federal Highway Administration (FHWA)
for construction materials used in transportation projects and for construction materials used in transportation projects and
GSA for construction materials used for federal buildings; in GSA for construction materials used for federal buildings; in
association with funds provided in Section 60503 (federal association with funds provided in Section 60503 (federal
buildings), Section 60506 (transportation), and Section 70006 to buildings), Section 60506 (transportation), and Section 70006 to
federal agencies to promote use of low-carbon materials, and federal agencies to promote use of low-carbon materials, and
Section 60112 to support Environmental Product Declarations Section 60112 to support Environmental Product Declarations
to include measurements of embodied GHG emissions in to include measurements of embodied GHG emissions in
products products
CRS-20 CRS-20

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
ENVIRONMENT





AND CLIMATE
JUSTICE

Section 13901
Permanently extends higher excise tax rates to fund the Black Permanently extends higher excise tax rates to fund the Black
1.159 1.159
— —
— —
Scott Scott
Permanent Extension of Permanent Extension of
Lung Disability Trust Fund on underground and surface coal Lung Disability Trust Fund on underground and surface coal
Szymendera Szymendera
Tax Rate to Fund Black Tax Rate to Fund Black
mines; prior to this change, these tax rates were temporary mines; prior to this change, these tax rates were temporary
Lung Disability Trust Lung Disability Trust
FunFundb
Section 60103
Provides funding to EPA for a new GHG Reduction Fund with Provides funding to EPA for a new GHG Reduction Fund with
— —
27.000 27.000
Grants Grants
Richard Richard
GHG Reduction Fund GHG Reduction Fund
$7 bil ion to make competitive grants to states, municipalities, $7 bil ion to make competitive grants to states, municipalities,
Lattanzio Lattanzio
tribal governments, and eligible recipients to provide financing tribal governments, and eligible recipients to provide financing
and technical assistance to enable low-income and disadvantaged and technical assistance to enable low-income and disadvantaged
communities to deploy or benefit from zero-emission communities to deploy or benefit from zero-emission
technologies, including distributed technologies on residential technologies, including distributed technologies on residential
rooftops, and to carry out other GHG emission reduction rooftops, and to carry out other GHG emission reduction
activities; $11.97 bil ion for general assistance; $8 bil ion for activities; $11.97 bil ion for general assistance; $8 bil ion for
low-income and disadvantaged communities; and $30 mil ion for low-income and disadvantaged communities; and $30 mil ion for
EPA administrative costs EPA administrative costs
Section 60106
Provides funding to EPA for grants and other activities to Provides funding to EPA for grants and other activities to
— —
0.050 0.050
Grants and other Grants and other
Richard Richard
Funding to Address Air Funding to Address Air
monitor and reduce GHG emissions and other air pol utants at monitor and reduce GHG emissions and other air pol utants at
assistance assistance
Lattanzio Lattanzio
Pol ution at Schools Pol ution at Schools
schools in low-income and disadvantaged communities, and for schools in low-income and disadvantaged communities, and for
providing technical assistance to such schools providing technical assistance to such schools
CRS-21 CRS-21

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 60201
Establishes an EPA grant program for community-based groups Establishes an EPA grant program for community-based groups
— —
3.000 3.000
Grants and technical Grants and technical
Angela Jones Angela Jones
Environmental and Environmental and
and partnerships to reduce pol ution and climate threats in and partnerships to reduce pol ution and climate threats in
assistance assistance
Climate Justice Block Climate Justice Block
“disadvantaged communities”; these grants would provide “disadvantaged communities”; these grants would provide
Grants Grants
support for community-led priorities to reduce pol ution, support for community-led priorities to reduce pol ution,
improve public health and climate readiness, and facilitate improve public health and climate readiness, and facilitate
community engagement community engagement
Section 80001
Add funds to the Bureau of Indian Affairs (BIA) for tribal climate Add funds to the Bureau of Indian Affairs (BIA) for tribal climate
— —
0.235 0.235
Various mechanisms Various mechanisms
Mariel Murray Mariel Murray
Tribal Climate Resilience Tribal Climate Resilience
resilience and adaptation programs, including for fish hatcheries resilience and adaptation programs, including for fish hatcheries
under BIA authorities under BIA authorities
Section 80002
Add funds to the Office of Native Hawaiian Relations for climate Add funds to the Office of Native Hawaiian Relations for climate
— —
0.025 0.025
Various mechanisms Various mechanisms
Mariel Murray Mariel Murray
Native Hawaiian Climate Native Hawaiian Climate
resilience and adaptation activities that serve the Native resilience and adaptation activities that serve the Native
under BIA authorities under BIA authorities
Resilience Resilience
Hawaiian Community; funds can be distributed through financial Hawaiian Community; funds can be distributed through financial
assistance, technical assistance, direct expenditure, grants, assistance, technical assistance, direct expenditure, grants,
contracts, or cooperative agreements contracts, or cooperative agreements
Section 80004
Adds funds to the Bureau of Reclamation for near-term drought Adds funds to the Bureau of Reclamation for near-term drought
— —
0.001 0.001
Other agency activities Other agency activities
Charles Stern Charles Stern
Emergency Drought Emergency Drought
relief actions to mitigate drought impacts for Indian tribes relief actions to mitigate drought impacts for Indian tribes
Relief for Tribes Relief for Tribes
affected by the operation of a Bureau of Reclamation water affected by the operation of a Bureau of Reclamation water
project, including through direct financial assistance to address project, including through direct financial assistance to address
drinking water shortages and to mitigate the loss of tribal trust drinking water shortages and to mitigate the loss of tribal trust
resources resources
CRS-22 CRS-22

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
AGRICULTURE,





FORESTRY, AND
LAND
CONSERVATION

Section 21001
Increases funding for Environmental Quality Incentives Program Increases funding for Environmental Quality Incentives Program
— —
18.100 18.100
Grants Grants
Megan Stubbs Megan Stubbs
Additional Agricultural Additional Agricultural
($8.5 bil ion), a USDA voluntary conservation program that ($8.5 bil ion), a USDA voluntary conservation program that
Conservation Conservation
provides farmers and ranchers with grants to implement provides farmers and ranchers with grants to implement
Investments Investments
environmentally beneficial conservation practices; increases environmentally beneficial conservation practices; increases
funding for Conservation Stewardship Program ($3.25 bil ion), a funding for Conservation Stewardship Program ($3.25 bil ion), a

USDA voluntary conservation program that provides farmers USDA voluntary conservation program that provides farmers
and ranchers with grants to maintain and improve existing and ranchers with grants to maintain and improve existing
conservation practices, and adopt additional practices on conservation practices, and adopt additional practices on
privately owned lands; increases funding for Agriculture privately owned lands; increases funding for Agriculture
Conservation Easement Program ($1.4 bil ion), a USDA Conservation Easement Program ($1.4 bil ion), a USDA
program that purchases easements to protect, restore, and program that purchases easements to protect, restore, and
enhance wetlands and working agricultural land; increases enhance wetlands and working agricultural land; increases
funding for Regional Conservation Partnership Program ($4.95 funding for Regional Conservation Partnership Program ($4.95
bil ion), a USDA program that provides grants to partners to bil ion), a USDA program that provides grants to partners to
deliver conservation assistance to landowners and producers to deliver conservation assistance to landowners and producers to
restore and improve soil, water, and wildlife on a regional or restore and improve soil, water, and wildlife on a regional or
watershed scale watershed scale
Section 21002
Provides funding to the Natural Resources Conservation Provides funding to the Natural Resources Conservation
— —
1.400 1.400
Technical assistance Technical assistance
Megan Stubbs Megan Stubbs
Conservation Technical Conservation Technical
Service (NRCS) at USDA for conservation technical assistance Service (NRCS) at USDA for conservation technical assistance
and data collection and data collection
Assistance Assistance
and for NRCS to carry out a program to quantify carbon and for NRCS to carry out a program to quantify carbon
sequestration and carbon dioxide, methane, and nitrous oxide sequestration and carbon dioxide, methane, and nitrous oxide
emissions, to col ect field-based data to assess the carbon emissions, to col ect field-based data to assess the carbon
sequestration and GHG emission reduction outcomes of the sequestration and GHG emission reduction outcomes of the
program, and to use the data to monitor and track those carbon program, and to use the data to monitor and track those carbon
sequestration and emissions trends through the USDA GHG sequestration and emissions trends through the USDA GHG
Inventory and Assessment Program Inventory and Assessment Program
CRS-23 CRS-23

link to page 30 link to page 30
CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 22003
Provides funding to USDA for grants to increase the sale and Provides funding to USDA for grants to increase the sale and
— —
0.500 0.500
Grants Grants
Kelsi Bracmort Kelsi Bracmort
Biofuel Infrastructure and Biofuel Infrastructure and
use of agricultural commodity-based fuels through infrastructure use of agricultural commodity-based fuels through infrastructure
Agriculture Product Agriculture Product
improvements for blending, storing, supplying, or distributing improvements for blending, storing, supplying, or distributing
Market Expansion Market Expansion
biofuels biofuels
Section 23001
Provides funding to USDA for National Forest Service Provides funding to USDA for National Forest Service
— —
2.150 2.150
Other agency activities Other agency activities
Katie Hoover
Anne Riddle National Forest System National Forest System
restoration, including hazardous fuels reduction, vegetation restoration, including hazardous fuels reduction, vegetation
Restoration and Fuels Restoration and Fuels
management, and the protection of old-growth forests and management, and the protection of old-growth forests and
Reduction Projects Reduction Projects
watersheds watersheds
Section 23002
Provides funding to USDA to support (1) a grant program under Provides funding to USDA to support (1) a grant program under
— —
0.550 0.550
Grants Grants
Anne Riddle Anne Riddle
Competitive Grants for Competitive Grants for
the Cooperative Forestry Assistance Act of 1978 to support the Cooperative Forestry Assistance Act of 1978 to support
Non-Federal Forest Non-Federal Forest
underserved landowners with climate mitigation or forest underserved landowners with climate mitigation or forest
Landowners Landowners
resilience; and (2) the wood innovation grant program (pursuant resilience; and (2) the wood innovation grant program (pursuant
to §8643 of the Agriculture Improvement Act of 2018) to §8643 of the Agriculture Improvement Act of 2018)


Section 23003
Provides funding to USDA for tree planting and related activities Provides funding to USDA for tree planting and related activities
— —
2.200 2.200
Grants Grants
Anne Riddle Anne Riddle
State and Private Forestry State and Private Forestry
under the Urban and Community Forestry Program and under the Urban and Community Forestry Program and
Conservation Programs Conservation Programs
acquisition of lands and interests in lands to protect forests acquisition of lands and interests in lands to protect forests
threatened with conversion under the Forest Legacy Program threatened with conversion under the Forest Legacy Program
Section 50221
Provides funding to DOI for projects for conservation, Provides funding to DOI for projects for conservation,
— —
0.250 0.250
Other agency activities Other agency activities
Laura Comay Laura Comay
National Parks and Public National Parks and Public
protection, and resiliency of lands and resources on lands protection, and resiliency of lands and resources on lands
Lands Conservation and Lands Conservation and
administered by the National Park Service and Bureau of Land administered by the National Park Service and Bureau of Land
Resilience Resilience
Management Management
CRS-24 CRS-24

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 50232
Provides funding to Bureau of Reclamation for design, study, and Provides funding to Bureau of Reclamation for design, study, and
— —
0.025 0.025
Other agency activities Other agency activities
Charles Stern Charles Stern
Canal Improvement Canal Improvement
implementation of projects to cover water conveyance facilities implementation of projects to cover water conveyance facilities
Projects Projects
with solar panels to generate renewable energy or for other with solar panels to generate renewable energy or for other
solar projects that increase water efficiency and assist in solar projects that increase water efficiency and assist in
implementation of clean energy goals implementation of clean energy goals
Section 50233
Adds funds for the Bureau of Reclamation for grants, contracts, Adds funds for the Bureau of Reclamation for grants, contracts,
— —
4.000 4.000
Grants, contracts, or Grants, contracts, or
Charles Stern Charles Stern
Drought Mitigation in the Drought Mitigation in the
or financial assistance agreements to or with public entities and or financial assistance agreements to or with public entities and
financial assistance financial assistance
Reclamation States Reclamation States
Indian tribes, for activities to mitigate the impacts of drought in Indian tribes, for activities to mitigate the impacts of drought in
the Reclamation States, with priority to the Colorado River the Reclamation States, with priority to the Colorado River
Basin and other basins experiencing comparable levels of long-Basin and other basins experiencing comparable levels of long-
term drought term drought
Section 60302
Adds funds for Fish and Wildlife Service for expenditures, Adds funds for Fish and Wildlife Service for expenditures,
— —
0.125 0.125
Direct expenditures, Direct expenditures,
Pervaze Sheikh Pervaze Sheikh
Funding for the United Funding for the United
grants, and contracts and cooperative agreements for rebuilding grants, and contracts and cooperative agreements for rebuilding
grants, contracts, and grants, contracts, and
States Fish and Wildlife States Fish and Wildlife
and restoring units of the National Wildlife Refuge System and and restoring units of the National Wildlife Refuge System and
cooperative cooperative
Service to Address Service to Address
State wildlife management areas by addressing the threat of State wildlife management areas by addressing the threat of
agreements agreements
Weather Events Weather Events
invasive species; increasing the resiliency and capacity of habitats invasive species; increasing the resiliency and capacity of habitats
and infrastructure to withstand weather events; and reducing and infrastructure to withstand weather events; and reducing
damage caused by weather events damage caused by weather events
CRS-25 CRS-25

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
CLIMATE





RESEARCH
Section 40001
Adds funds to the National Oceanic and Atmospheric Adds funds to the National Oceanic and Atmospheric
— —
2.600 2.600
Direct expenditures, Direct expenditures,
Eva Lipiec Eva Lipiec
Investing in Coastal Investing in Coastal
Administration (NOAA) to conserve, restore, and protect Administration (NOAA) to conserve, restore, and protect
contracts, grants, contracts, grants,
Communities and Communities and
coastal and marine habitats and resources, support natural coastal and marine habitats and resources, support natural
cooperative cooperative
Climate Resilience Climate Resilience
resources that sustain coastal and marine resource dependent resources that sustain coastal and marine resource dependent
agreements, or agreements, or
communities, and complete marine fishery and marine mammal communities, and complete marine fishery and marine mammal
technical assistance technical assistance
stock assessments stock assessments
Section 40004
Adds funds to NOAA to accelerate advances and improvements Adds funds to NOAA to accelerate advances and improvements
— —
0.200 0.200
Grants and research Grants and research
Eva Lipiec Eva Lipiec
Oceanic and Atmospheric Oceanic and Atmospheric
in research, observation systems, modeling, forecasting, in research, observation systems, modeling, forecasting,
Research and Forecasting Research and Forecasting
assessments, and dissemination of information to the public assessments, and dissemination of information to the public
for Weather and Climate for Weather and Climate
related to weather, coasts, oceans, and climate; and for related to weather, coasts, oceans, and climate; and for
competitive grants to fund climate research as it relates to competitive grants to fund climate research as it relates to
weather, ocean, coastal, and atmospheric processes and weather, ocean, coastal, and atmospheric processes and
conditions, and impacts to marine species and coastal habitat conditions, and impacts to marine species and coastal habitat
Section 40005
Adds funds to NOAA to procure additional high-performance Adds funds to NOAA to procure additional high-performance
— —
0.190 0.190
Other agency activities Other agency activities
Eva Lipiec Eva Lipiec
Computing Capacity and Computing Capacity and
computing, data processing capacity, data management, and computing, data processing capacity, data management, and
Research for Weather, Research for Weather,
storage assets storage assets
Oceans, and Climate Oceans, and Climate
CROSS-CUTTING





Section 50172
Provides funding to DOE for national laboratory infrastructure Provides funding to DOE for national laboratory infrastructure
— —
2.000 2.000
Other agency activities Other agency activities
Corrie Clark Corrie Clark
National Laboratory National Laboratory
and general plant projects, of which: Office of Science: $1.55 and general plant projects, of which: Office of Science: $1.55
Infrastructure Infrastructure
bil ion, including high energy physics, fusion energy science, bil ion, including high energy physics, fusion energy science,
nuclear physics projects, and basic energy sciences, among nuclear physics projects, and basic energy sciences, among
others; Office of Fossil Energy and Carbon Management: $150 others; Office of Fossil Energy and Carbon Management: $150
mil ion; Office of Nuclear Energy: $150 mil ion; Office of Energy mil ion; Office of Nuclear Energy: $150 mil ion; Office of Energy
Efficiency and Renewable Energy: $150 mil ion Efficiency and Renewable Energy: $150 mil ion
CRS-26 CRS-26

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CBO Estimated


Revenue Effects
Appropriationsa

CRS Contact
$ Billions
$ Billions
(for
Section Number and
Cumulative 2022-
Cumulative 2022-
Type of Federal
Congressional
Title
Overview of Climate-Related Provisions
2031
2031
Assistance
Clients)
Section 60111
Provides funding to EPA to support enhanced standardization Provides funding to EPA to support enhanced standardization
— —
0.005 0.005
Other agency activities Other agency activities
Angela Jones Angela Jones
Greenhouse Gas Greenhouse Gas
and transparency of corporate climate action commitments and and transparency of corporate climate action commitments and
Corporate Reporting Corporate Reporting
plans to reduce GHG emissions; enhanced transparency plans to reduce GHG emissions; enhanced transparency
regarding progress toward meeting such commitments and regarding progress toward meeting such commitments and
implementing such plans; and progress toward meeting such implementing such plans; and progress toward meeting such
commitments and implementing such plans commitments and implementing such plans
Section 60114
Provides funding ($250 mil ion) to EPA to issue a grant to at Provides funding ($250 mil ion) to EPA to issue a grant to at
— —
5.000 5.000
Grants Grants
Jonathan Jonathan
Climate Pol ution Climate Pol ution
least one eligible entity (e.g., states, state agencies, least one eligible entity (e.g., states, state agencies,
Ramseur Ramseur
Reduction Grants Reduction Grants
municipalities, Indian tribes) in each state to develop a plan for municipalities, Indian tribes) in each state to develop a plan for
GHG emission reduction; provides funding ($4.75 bil ion) to GHG emission reduction; provides funding ($4.75 bil ion) to
EPA to issue grants to entities to implement their GHG EPA to issue grants to entities to implement their GHG
reduction plans reduction plans
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 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, 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. https://www.cbo.gov/publication/58366.
Notes: A “—” indicates no revenue effects or appropriations for this provision. 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 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) 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. 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, b. See CRS Report R47202, Tax Provisions in the Inflation Reduction Act of 2022 (H.R. 5376), coordinated by Mol y F. Sherlock. , coordinated by Mol y F. Sherlock.
c. See CRS Insight IN11984, c. See CRS Insight IN11984, Inflation Reduction Act of 2022 (IRA): Department of Energy Loan Guarantee Programs, by Phil ip Brown. , by Phil ip Brown.
d. See CRS Insight IN11981, d. See CRS Insight IN11981, Electricity Transmission Provisions in the Inflation Reduction Act of 2022, by Ashley J. Lawson. , by Ashley J. Lawson.
e. See CRS Insight IN11980, e. See CRS Insight IN11980, Offshore Wind Provisions in the Inflation Reduction Act, by Laura B. Comay, Corrie E. Clark, and Mol y F. Sherlock. , by Laura B. Comay, Corrie E. Clark, and Mol y F. Sherlock.
f. f.
In leasing offshore wind resources, the federal government col ects certain proceeds, such as bid bonuses, rents, and royalties. Although this amount is listed as In leasing offshore wind resources, the federal government col ects 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., “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). reductions in federal spending).
g. See CRS Insight IN11996, g. See CRS Insight IN11996, Clean Vehicle Tax Credits in the Inflation Reduction Act of 2022, by Mol y F. Sherlock. , by Mol y F. Sherlock.
h. See CRS Report R44692, h. See CRS Report R44692, Five-Year Offshore Oil and Gas Leasing Program: Status and Issues in Brief, by Laura B. Comay. , by Laura B. Comay.
CRS-27 CRS-27


i. i.
See CRS Report R47206, See CRS Report R47206, Inflation Reduction Act Methane Emissions Charge: In Brief, by Jonathan L. Ramseur. , by Jonathan L. Ramseur.
j. j.
In CBO’s cost estimate report, “estimated outlays” from this provision totaled $61 mil ion between FY2022 and FY2031. Congressional Budget Office, “Estimated In CBO’s cost estimate report, “estimated outlays” from this provision totaled $61 mil ion 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 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. Majority Leader on July 27, 2022,” revised August 5, 2022, https://www.cbo.gov/publication/58366.
k. See CRS Report R43767, k. See CRS Report R43767, The Defense Production Act of 1950: History, Authorities, and Considerations for Congress, by Heidi M. Peters; and CRS Report R47124, , 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. , by Heidi M. Peters et al.
l. l.
See White House, “FACT SHEET: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing,” press release, June 6, 2022, 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-energy-https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/06/fact-sheet-president-biden-takes-bold-executive-action-to-spur-domestic-clean-energy-
manufacturing/. In addition, explanatory documentation released by Senate Democrats describe this funding as allocated for DPA activities connected to heat pumps manufacturing/. 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,” 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.https://www.democrats.senate.gov/imo/media/doc/summary_of_the_energy_security_and_climate_change_investments_in_the_inflation_reduction_act_of_2022.pd
fpdf. .

CRS-28 CRS-28

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



Author Information

Jane A. Leggett, Coordinator
Jonathan L. Ramseur, Coordinator
Specialist in Energy and Environmental Policy
Jonathan L. Ramseur, Coordinator Specialist in Environmental Policy Specialist in Environmental Policy




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