The federal Inflation Reduction Act just turned two years old.
Those tracking its implementation said when you peel back the layers, a lot is taking shape to help Wisconsinites make their buildings and homes more energy-efficient.
Tax credits in the act are designed to incentivize property owners to reduce their structure's carbon footprint but policy experts said there is still not enough awareness of the law's rollout and the available cost-sharing aid. Point-of-sale rebates also are being offered to homeowners, and Wisconsin just became the first state to launch the funding component.
Mackenzie Mindel, sustainability excellence fellow for the U.S. Green Building Council and a city council member in LaCrosse, said the process is set up to avoid feeling overwhelmed.
"The first step is really getting that energy audit," Mindel explained. "There are IRA-approved contractors who will come in and do an energy audit on your house and determine for you what would be the best cost savings."
They advise income-eligible residents on which clean-energy systems or appliances would be the perfect fit. Mindel pointed out the rebates can be a big help for low-income households dealing with higher energy costs. Critics of the act have said its lack of spending caps mean it could cost taxpayers more than previously estimated.
As for the federal tax credits, some programs allow for savings of 30% for energy upgrades.
Ben Evans, federal legislative director for the U.S. Green Building Council, said as a whole, the incentives are versatile with some "mixing and matching" possible.
"The beauty of the Inflation Reduction Act is that you can combine a lot of these," Evans emphasized. "It's not like you have to just pick one. You can get a couple of different tax incentives for the same project. Let's say you're renovating a building and you're also adding some rooftop solar; you can get tax incentives for each of those."
The assistance comes amid growing pressure for policymakers to mitigate the effects of climate change linked to fossil-fuel sources. Researchers said globally, buildings account for 40% of greenhouse gas emissions, by far the largest share of any economic sector.
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New York's Public Service Commission has approved a three-year rate increase for National Grid.
The more than 19% rate increase will impact Brooklyn, Queens, Staten Island and Long Island ratepayers starting Sept. 1. People will see an initial $30 increase in their bills this year. Outer borough residents will see rates grow $31 by 2026. Long Islanders will see a $27 rate increase in the same period.
Chris Casey, New York utilities regulatory director for the Natural Resources Defense Council, called it a step backward for New York's climate goals.
"This decision really undermines the goals and is prolonging our reliance on fossil fuels," Casey contended. "Which will increase costs for customers and delay the clean energy transition."
The money from the rate increases will finance capital investments in methane gas and help the company replace 351 miles of gas distribution pipes. New Yorkers were split on the rate case. Those who opposed it said it was too expensive or felt the state should move to renewable energy. Supporters countered it creates well-paying union jobs and improves reliability by removing leak-prone pipes.
Despite the approval of the increase going forward, New York is already moving away from using gas. The 2023 All-Electric Buildings Act bans natural gas and other fossil fuels in new buildings. Other bills continuing the work include the New York HEAT Act.
Casey noted the bill lets the Public Service Commission align utility companies with the state's climate laws.
"In particular, there's some provisions in the Public Service laws that effectively create a right to natural gas," Casey pointed out. "It enables the companies to provide gas to anybody who wants it in their service territories."
He added the provision makes it harder to manage the natural gas system and transition it to one aligned with the state's clean energy goals. The HEAT Act could cut utility bills nearly in half for one in four energy-burdened New Yorkers. Part of the bill ensures no household pays more than 6% of its annual income on gas or electricity bills.New York's Public Service Commission has approved a three-year rate increase for National Grid.
The more than 19% rate increase will impact Brooklyn, Queens, Staten Island and Long Island ratepayers starting Sept. 1. People will see an initial $30 increase in their bills this year. Outer borough residents will see rates grow $31 by 2026. Long Islanders will see a $27 rate increase in the same period.
Chris Casey, New York utilities regulatory director for the Natural Resources Defense Council, called it a step backward for New York's climate goals.
"This decision really undermines the goals and is prolonging our reliance on fossil fuels," Casey contended. "Which will increase costs for customers and delay the clean energy transition."
The money from the rate increases will finance capital investments in methane gas and help the company replace 351 miles of gas distribution pipes. New Yorkers were split on the rate case. Those who opposed it said it was too expensive or felt the state should move to renewable energy. Supporters countered it creates well-paying union jobs and improves reliability by removing leak-prone pipes.
Despite the approval of the increase going forward, New York is already moving away from using gas. The 2023 All-Electric Buildings Act bans natural gas and other fossil fuels in new buildings. Other bills continuing the work include the New York HEAT Act.
Casey noted the bill lets the Public Service Commission align utility companies with the state's climate laws.
"In particular, there's some provisions in the Public Service laws that effectively create a right to natural gas," Casey pointed out. "It enables the companies to provide gas to anybody who wants it in their service territories."
He added the provision makes it harder to manage the natural gas system and transition it to one aligned with the state's clean energy goals. The HEAT Act could cut utility bills nearly in half for one in four energy-burdened New Yorkers. Part of the bill ensures no household pays more than 6% of its annual income on gas or electricity bills.
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Nebraska ag producers and small businesses have until Sept. 30 to apply for the latest funding round of the U.S. Department of Agriculture's Rural Energy for America Program, part of the Farm Bill providing grants and guaranteed loans for renewable energy systems or energy efficiency improvements.
The Inflation Reduction Act included nearly $2 billion for projects under the program.
Christopher Faber, state energy coordinator for Nebraska USDA Rural Development, said the legislation also increased the percentage of funding allotted to grants from 25% to 50%.
"To be eligible for those projects, you either need to be an agricultural producer which would be involved in the day-to-day operations of the farm production and at least 50% of their income would come from that, or be a rural small business and be in a population area of less than 50,000," Faber explained.
Darr Grain in Cozad is building two wind turbines with the help of funding from the program which could save the company as much as $10,000 a year in electricity costs. Faber pointed out free grant-writing assistance is available for those wanting help with the application process.
Funding from the program allowed fourth-generation farmer and rancher Alan Koelling in Ord to purchase a new centrifuge for his family's sunflower oil company, Simply Sunflowers. Koelling said not only is the centrifuge more energy efficient, it was instrumental in growing their business.
"We hit a bottleneck, and the centrifuge was a big help in speeding up our process of cleaning our oil," Koelling explained. "As we can increase production, we can naturally increase our sales."
Koelling acknowledged it might have been years before they were able to purchase the centrifuge. The funding allowed them to increase production at a time when there was a void in the supply of sunflower oil. He added it also made it possible for them to employ several people part-time, which was one of their goals.
"Because it's really challenging in rural Nebraska to make ends meet with one income, and this gives families a chance for a supplemental income," Koelling noted. "Sometimes that's just enough to make life easier and better for a family."
Rural Energy for America Program funding is part of the Biden-Harris Justice 40 Initiative.
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The Biden administration is enhancing the nation's power grid by funding several storage, resilience and transmission projects.
The money will affect 18 states, including a massive data center in Northern Virginia.
Vince Barnett, Industry Leader - Data Centers for the Virginia Economic Development Partnership, said there is a lot of demand for power in the area. About 70% of the world's internet traffic flows through Loudoun County.
"We've got some of the best work talent across the nation," Barnett asserted. "We've got one of the strongest tech communities. We've got great utility partners, and on and on down the list. So all of that plays into this."
The region's tech sector is expected to keep growing. Amazon announced a $35 billion plan for new data centers in Northern Virginia last year. And the rise of remote work, streaming and artificial intelligence will require more computer servers, hardware and cooling fans. All that means data centers could need about 9% of the nation's electricity generation by 2030, about double what it consumes today.
The federal money comes from the Bipartisan Infrastructure Law and invests in tech such as battery storage and power lines. One of the goals is to make power infrastructure more resilient against extreme weather events. Barnett pointed out it will also expand work opportunities and tax coffers in Virginia.
"Last year, 2023, data centers directly provided roughly 12,000 operational jobs," Barnett noted. "That's the data center jobs themselves, and another 14,000 construction jobs. That represents about $2.8 billion in operational and construction pay and benefits."
This round of money follows a $3.5 billion funding announcement last fall for the same federal program. Virginia data center projects have faced local opposition about noise and environmental concerns.
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