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 Minnesotans 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.
Willow Nichols, partner and senior electrical engineer for Victus Engineering, one of the companies involved with the projects, said the policies are resulting in some intrigue among clients rethinking their heating and cooling systems.
"Some of the things happening to make that transition easier are driving our clients to look at systems that might be more sustainable, but that have traditionally had a higher upfront cost," Nichols explained.
The law's funding helps offset costs. One example is the Anderson Center in Red Wing, where the nonprofit is adding a geothermal energy system with hopes of a tax credit of at least 30%. Nichols pointed out the region needs more excavating firms to meet demand for those specific projects. Critics of the act have said its lack of spending caps mean it could cost taxpayers more than previously estimated.
Ben Evans, federal legislative director for the U.S. Green Building Council, said the measure is not focused only on businesses and public sites. He added the versatility of the financial incentives allows homeowners to maximize their savings.
"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 Inflation Reduction Act is made up of multiple programs. Specific rebates for homeowners, such as upgrading appliances to newer electric models, are in the process of rolling out in each state. The rebates will be offered at the point of sale as opposed to the tax credits. Minnesota officials said they hope to launch their version in early 2025 and have it run through 2031 or until all funds are used.
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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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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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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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