09-26-2022 BPU RPT 16 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 26, 2022 ENERGY, CLIMATE, AND DROUGHT RESILIENCY PROVISIONS OF INFLATION REDUCTION ACT OF 2022 On August 16, 2022, President Joe Biden signed into law the Fiscal Year (FY) 2022 budget reconciliation package, the Inflation Reduction Act (IRA) of 2022 (P.L. 117-169). The budget package covers three main legislative items: (1) tax reform; (2) energy and climate investments; and (3) health care. The law will raise $737 billion and authorize $369 billion on energy and climate change, and $4 billion on funding for drought resiliency in western states. The IRA represents the single biggest climate investment in U.S. history and the first step in a multi-year effort into an enormous expansion of clean energy that would put the country on a path for roughly 40% emissions reductions by 2030. Below is a summary of some of the most relevant energy, climate, and drought resiliency provisions of the IRA 2022 for Riverside Public Utilities and its ratepayers. 1. Consumer Energy Costs This bill will provide a range of incentives to consumers to lower energy costs. This includes direct consumer incentives to buy energy efficient and electric appliances, clean vehicles, and rooftop-solar; and invest in home energy efficiency. Additionally, a significant portion of the funding is targeted to lower income households and disadvantaged communities. This includes: a. $9 billion in consumer home energy rebate programs, focused on low-income consumers, to electrify home appliances and for energy efficient retrofits. b. 10 years of consumer tax credits to make homes energy efficient and run-on clean energy, by making heat pumps, rooftop solar, electric HVAC and water heaters more affordable. c. $4,000 consumer tax credit for lower/middle income individuals to buy used clean vehicles, and up to $7,500 tax credit to buy new clean vehicles. d. $1 billion grant program to make affordable housing more energy efficient. 2. American Energy Security and Domestic Manufacturing This bill will support energy reliability and cleaner energy production coupled with historic investments in American clean energy manufacturing. This includes: a. Production tax credits to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing with an estimated investment of $30 billion.