LOCALIZE IT: Biggest climate spending bill signed into law

EDITORS/NEWS DIRECTORS:

President Joe Biden has just signed into law the biggest package of climate spending in history. With about $375 billion in incentives for cleaner energy and a smattering of fees, experts say it will accelerate the change already underway across America’s energy landscape. So there’s plenty for local and regional reporters to find to bring this major story home.

There’s money that will be flowing, often in tax credits over the next 10 years, to spur manufacturing and installation of rooftop solar panels for homes, heat pumps, solar and wind enerngy farms, electric cars and trucks. Heavy manufacturing that now uses fossil fuels get incentives to switch to cleaner technology. The embryonic field of carbon capture and storage gets a major financial boost, so there are jobs and money in pushing carbon dioxide into the ground. There are increased fees or taxes on methane leaks from energy production and increased fees on oil for Superfund, so nearby Superfund sites that might be stalled could start work.

The bill is 730 pages long and can be read here: https://www.congress.gov/117/bills/hr5376/BILLS-117hr5376eas.pdf. The law firm of Holland & Knight has a 41-page summary here: https://www.hklaw.com/-/media/files/insights/publications/2022/08/080822inflationreductionactsummary.pdf?la=en

BASICS: YOUR ENERGY MIX

Where does your power come from? Is it coal, natural gas, oil — all of which produce heat-trapping gases — or is it a fuel like nuclear, hydropower, solar or wind power that doesn’t have carbon emissions? Local utilities know their sources of energy. Knowing the sources in your area will help you focus in on potential stories. The U.S. Energy Information Administration has state by state profiles that can help: https://www.eia.gov/state/. And the same agency has state-by-state data on carbon emissions: https://www.eia.gov/environment/emissions/state/

Even when it comes to electric cars and trucks, it matters where the electric power comes from. The U.S. Energy Department has another site that helps calculate carbon footprints of electric vehicles by state: https://afdc.energy.gov/vehicles/electric_emissions.html and the Union of Concerned Scientists, an advocacy group, has a tool that measures how clean electric vehicle by model and zip code: https://evtool.ucsusa.org/

AT HOME

Look into whether people are aware of the tax credit for solar panels. Will many people in your region opt to install them? The Solar Energy Industries Association has a map of state-by-state solar jobs and installations, where a state ranks in solar, what percentage of power comes from solar, how many solar companies are in the state: https://www.seia.org/states-map. The association can also put you in touch with local solar panel installers. That way you can get photos and video of solar panel installation.

For people who do not own their own rooftops, or can’t put up a lot of cash, community solar is a growing option, and the new law has money dedicated to this kind of arrangement. With community solar, home renters or owners own or rent part of a solar array and are usually guaranteed certain electrical rates that are lower than what they are currently paying.

Another area related to homes is switching from gas-powered heating systems to heat pumps, which run on electricity. The IRA provides $4 billion to pay to help low income people cut the cost of switching to a heat pump system. There are also subsidies for higher income people.

ON THE ROAD

The new law heavily promotes clean vehicles, mostly electric cars and trucks. Tax credits apply to people who make less than a certain amount of income.

Consumers can get up to $7,500 in refundable tax credits for buying a new plug-in electric car. But there’s a catch. Those tax credits depend on certain percentages of the battery being processed, extracted and manufactured in North America, and so far most cars and batteries don’t achieve that. So check with local car dealers to find out if they are getting increased inquiries and if they are mentioning the issues with sourcing.

For the first time, there is a used car credit of up to $4,000 for clean vehicles that are at least two years old. So reach out to used car lots and see if they’re expecting or seeing a change. And there’s a tax credit for heavy commercial vehicles too.

Because of the battery sourcing requirement, there’s expected to be a boom in American mining, manufacturing and researching in the battery field. Are there local companies and universities poised to jump in and help meet those needs?

THE NEIGHBORHOOD

The new law has an emphasis on environmental and climate justice, helping poorer communities that often have felt the brunt of pollution. There’s $3 billion in grants for “community-led” air pollution monitoring, cleanup programs, prevention. This includes “fenceline air monitoring” near big polluters. Do you have big industrial emitters and will new monitors be installed?

There’s money to help with the health risks from urban heat islands. Check with community leaders to see if they will be asking for some of that money. This often includes more tree canopy, lighter rooftops and less blacktop.

Is the utility that serves your area a city-owned utility? Is it a rural electric cooperative? If so, their situation when it comes to owning solar and wind has changed dramatically under the climate law. That’s because wind and solar farms used to only be available to organizations that pay a lot of federal taxes. Now these nonprofits, which don’t have to pay federal taxes, can benefit financially from building out wind and solar. Ask them if they will.

ENERGY ETC.

If your region is coastal, will there be a shipyard built or adapted for the ships that service offshore wind? Some coastal towns are likely to become hubs for offshore wind activity.

Does your local rail spur run to the port, and can the track accommodate giant wind blades?

Is your area part of a traditional oil and gas region? If so, there could be more money coming, or perhaps less production — either way, it’s news. The climate bill substantially increases the lease rates for oil and gas lands, so those places that see production activity could see more money coming in. Or operators could decide to explore and produce less.

There’s a fee on leaking methane from drilling. Check with local companies and with neighbors to see if they release or flare methane during energy production. The Environmental Defense Fund, an advocacy group, has mapped several big leaks of methane: https://www.edf.org/climate/methanemaps.

SUPERFUND

Areas contaminated with hazardous waste can be designated as Superfund sites. In your area, do you have any Superfund sites that have not been cleaned? Do you have a site that has been waitlisted or not put on the Superfund list despite local efforts? The new law has increased the tax on each barrel of oil to fund more Superfund cleanups. The U.S. Environmental Protection Agency hasn’t decided whether it will prioritize new sites or existing ones. Either way, you can interview neighbors of waste sites and would-be Superfund sites.

You can find existing sites here: https://www.epa.gov/superfund/search-superfund-sites-where-you-live.

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Localize It is an occasional feature produced by The Associated Press for its customers’ use. Questions can be directed to Katie Oyan at koyan@ap.org.