And several of the projects that LPO financed have served as springboards to market acceptance for technology sectors that are readily financed by commercial lenders today, such as utility-scale solar photovoltaic (PV) and wind. The Inflation Reduction Act (IRA) of 2022 will result in an investment of $369 billion in energy and climate change programs (link here) and will avoid 6.3 billion tons of cumulative greenhouse gas emissions by 2030 (Princeton University ZERO Lab Preliminary Report: The Climate and Energy Impacts of the Inflation Reduction Act of 2022), amounting to a 40 percent annual emissions reduction compared to 2005 levels (link here). PowerTap Hydrogen Capital Corp. VANCOUVER, British Columbia and IRVINE, Calif., Aug. 17, 2022 (GLOBE NEWSWIRE) -- PowerTap Hydrogen Capital Corp. (NEO: MOVE) (FWB: 2K6) (OTC: MOTNF) (PowerTap or the Company or MOVE)is pleased to provide an update on the US Inflation Reduction of Act (IRA) of 2022 recently signed by President Biden, which allows PowerTap to expand outside of California since the incentives are now also at federal level. According to recently published analysis from global law firm Shearman and Sterling (link here), this critical legislation positions the USA as among the most competitive places in the world to develop green hydrogen projects across the value chain. The Inflation Reduction Act is a scaled back version of part of the Build Back Better agenda proposed by Biden early in his administration. The deal was awarded as the 2011 Renewable Energy Deal of the Year by Environmental Finance for its innovative financing. IRA appropriates approximately $11.7 billion in total for LPO to support issuing new loans. Stradley Ronon Stevens & Young, LLP September 15, 2022 - On Aug. 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022 (IRA) into law. In addition, this hydrogen USA federal tax credit that PowerTap expects to qualify for is on top of the State of California LCFS (Low Carbon Fuel Standard) hydrogen refueling infrastructure and dispensing carbon credits that PowerTap and other hydrogen producers will receive (latest LCFS guidance from the State of California is here). The American Recovery and Reinvestment Act (ARRA) (P.L. However, the wage requirement in the new bill seems to be the most important part of the deal multiplying the size of the tax credit by a factor of five. The law makes major investments in surface transportation, including rail and public transit, and climate resilient infrastructure. What are the impacts of the Build Back Better Act (H.R. Since release of our "Preliminary Report: The Climate Impact of Congressional Infrastructure and Budget Bills," on October 20th, 2021, the U.S. House of Representatives passed the Infrastructure Investment and Jobs Act ( H.R. This is enough to close two-thirds of the gap between what current policies, ie 'business as usual', will achieve and where the US would need to be in 2030 to hit . Read more about LPOs mission and track record here: /lpo/articles/getting-know-loan-programs-office. The Inflation Reduction Act of 2022 (IRA) contains a new version of this fee with a number of modifications, including a one-year delay in implementation and a narrowing of the scope of oil and gas facilities that would be required to pay the fee. While not every loan application will move forward, as of the end of July, LPO had 77 active applications totaling $80.8 billion in requested loans and loan guarantees across a variety of sectors. Since LPO made its first investments in utility-scale wind and solar in 2010, more than $1 trillion in global investments have subsequently flowed into renewable energy. Speaker of the House Nancy Pelosi, D-Calif., talks to reporters on Friday during her weekly news conference ahead of the House vote on the Inflation Reduction Act of 2022 . LPO fills this gap in commercial deployment by serving as a bridge to bankability for innovative and high-impact energy technologies, providing them with access to needed loans and loan guarantees when private lenders cannot or will not until a given technology has reached full market acceptance. While significant capital is available for decarbonization technologies, these projects can still lack access to adequate debt capital. The IRA also adds a new loan program, the Energy Infrastructure Reinvestment Financing Program (section 1706), which can help repurpose energy infrastructure that has ceased operations or are still operating with a total cap on loans of $250 billion. This bipartisan infrastructure investment bill (H.R. When the BBB was first proposed, it included fiscal support for the Table 1: Inflation Reduction Act of 2022 . The wide-ranging impacts of these new and expanded authorities are further described below. 1 but along with this important environmental impact, the ira is likely to affect the us economy in a variety of ways, including driving up investment spending, driving down the 117-103. Inflation Reduction Act of 2022: Modeling Major Climate and Energy Provisions Experts from RFF, Energy Innovation, the REPEAT Project, and Rhodium Group discuss new analyses that project the bill's potential impacts on US households and economy-wide emissions reductions. Besides spurring clean energy deployment, the Inflation Reduction Act could bring the U.S. in line with its Paris Agreement goal of reducing greenhouse gas emissions by 40% from 2005 levels, according to analysis by Princeton University's REPEAT Project. REPEAT | Rapid Energy Policy Evaluation & Analysis Toolkit Analysis by the REPEAT Project, an energy policy evaluation group, suggests the Inflation Reduction Act could cut 2030 CO2 emissions by an extra gigaton (one billion metric tons). The Inflation Reduction Act of 2022 is the largest investment in climate and energy in American history," according to the EPA. The Inflation Reduction Act (IRA), signed into U.S. law by President Joe Biden on August 16th, might be the biggest climate investment in history, but it does not look much like the kinds of policies that have been most championed by climate activists and economists. On August 16, 2022, President Biden signed the landmark "Inflation Reduction Act" (IRA) into law, which contains several renewable energy tax breaks to help companies and U.S. consumers. September 14, 2022 Alex Muresianu The Inflation Reduction Act created numerous tax subsidy programs intended to accelerate the transition to a greener economy. A series of reports summarizing key findings from REPEAT Project analysis. 50141 of the Inflation Reduction Act precludes the use of amounts provided by IRA for commitments to loan guarantees under section 1703 (42 U.S.C. Join McKinstry's Megan Owen to explore the . IRA creates a new program under Title 17 (section 1706), the Energy Infrastructure Reinvestment (EIR) Program, to guarantee loans to projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases. These amounts increase LPOs existing loan programs by approximately $100 billion in new loan authority. The basic tax credit rate for qualified clean hydrogen is set at $0.60/kg, with a sliding scale depending on lifecycle emissions measured in carbon dioxide-equivalent (CO2e) of the hydrogen produced. Under an illustrative scenario where that provision was extended indefinitely, the 10-year deficit reduction estimate falls to $89 billion. There are a significant number of changes to the Build Back Better Act, which the REPEAT Project has carefully documented along with a thorough catalog of all climate and clean energy provisions in the final Infrastructure Bill in this document. October 25, 2022. New appropriations provided by IRA may be used by the Secretary to issue loans for a range of advanced technology vehicles and their components, including newly authorized uses from the Bipartisan Infrastructure Law, which to date had not been funded. Figure 2. The Inflation Reduction Act (IRA) is the most significant climate legislation in United States history. The Rhodium Group released preliminary analysis of the bill finding that the Inflation Reduction Act would cut US net greenhouse gas emissions down to 31% to 44% below 2005 levels in 2030 compared to 24% to 35% under current policy. IRA appropriations also support the expanded activities authorized by the Bipartisan Infrastructure Law that required these new appropriations to go into effect. These expanded activities support projects involving critical minerals processing, manufacturing, and recycling, and removing the innovation requirement for State Energy Financing Institution-backed projects. 1 p.m. . A decade ago, LPO financed projects through the Section 1705 program in order to demonstrate successful commercial operation and bankability to commercial lenders, who could then finance future projects. The REPEAT Project analysis is broadly in line with early estimates from analysts at . 5376) contains over $500 billion in tax credits, grants, rebates, and other policies to deploy clean electricity, electric vehicles, building electrification and efficiency, hydrogen, carbon capture and storage, and low-carbon transportation fuels. The Carbon Dioxide Transportation Infrastructure Finance and Innovation (CIFIA) Program. Request a pre-application consultation by emailing, LPO plans to provide initial implementing guidance, and collect public comment on program design, for section 1706 in an upcoming Title 17 Notice of Proposed Rulemaking. Finally, IRA increases the aggregate amount of loans available at any time under the Tribal Energy Loan Guarantee Program (TELGP) from $2 billion to $20 billion. The Inflation Reduction Act amends the non-interference clause by adding an exception that requires the Secretary of HHS to negotiate prices with drug companies for a small number of single-source . Here's what's in it. Within its energy and climate provisions, Inflation Reduction Act (IRA) appropriates approximately $11.7 billion in total for the Loan Programs Office (LPO) to support issuing new loans. The Inflation Reduction Act (IRA) of 2022 will result in an investment of $369 billion in energy and climate change programs (link here) and will avoid 6.3 billion tons of cumulative greenhouse . Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. These projects supported more than 10,000 jobs and have the capacity to power more than 1 million average American homes annually. According to detailed analysis provided by Recharge, the worlds leading business intelligence source for the renewable energy industries (link here), the $433B Inflation Reduction Act of 2022 creates a tax credit that would pay PowerTap and other clean hydrogen producers up to $3 per kilogram (adjusted for inflation). Learn how the bill cuts U.S. emissions by roughly 1 billion tons by 2030 and compare to previously introduced and enacted legislation. 3684) passed the House and Senate and was signed into law in November 2021. But how far will it cut U.S. emissions of greenhouse gases? These projects supported more than 10,000 jobs and have the capacity to power more than 1 million average American homes annually. For individuals who earn more than $150,000 per year, and married couples who file taxes and earn a combined income of less than $300,000 per year, the Inflation Reduction Act would offer a $7,500 tax credit on the purchase of some types of electric vehicles. Repeat Project estimates that the act will lead to a 13% decline in the use of petroleum fuel and an 8% decline in gas use by 2030, compared to 2021 levels. The Inflation Reduction Act is the most aggressive action in tackling the climate crisis in U.S. history. We agree with Wes Edens (Co-Founder, Principal and Co-CEO of Fortress Investment Group, a US$ 50 billion asset manager) recent comments on CNBC that blue hydrogen has the potential to have a much larger market share in the USA than green hydrogen due to cost advantages and the use of natural gas and renewable natural gas.. New Energy in Existing LPO Programs, #DeployDeployDeploy: 2. U.S. Department of Energy LP 101000 Independence Avenue, SWWashington D.C. 20585. Participants Since 2011, utility-scale wind projects have been able to attract commercial lenders and continue to grow as one of the largest sources of new electricity in the United States. The Inflation Reduction Act (IRA), passed by Congress on August 12, 2022, creates important incentives for clean energy and equity-centered environmental investments. A package of environmental justice provisionsin the Inflation Reduction Act provide at least $60 billion to reduce harmful pollution in environmentally overburdened communities, ensure more equitable access to renewable energy and energy efficiency and building electrification opportunities, and improve public health and climate resiliency.