WASHINGTON, DC – Martin Heinrich (DN.M.) and Tina Smith (D-Minn.) co-chairs of the Senate Electricity Pool participated in “Electric Explainer,” a virtual event hosted yesterday by Rewiring America to discuss historical climate provisions included in the Inflation Reduction Act , its implications for lowering costs for American households, and how this generational investment can transform America’s energy and climate.
WATCH: Heinrich, Smith highlight electrification measures in the Inflation Reduction Act
“The clean energy and electricity investments that we ultimately secured in the Inflation Reduction Act of 2022 represent by far the most important steps Congress has ever taken to catalyze the widespread deployment of highly efficient, all-electric, climate-pollution-free technologies,” Heinrich said. “These electric technologies, from air source heat pumps for home heating to induction stoves and electric clothes dryers, have already surpassed their fossil-fueled alternatives in terms of efficiency and performance. As these electric technologies are more efficient and less expensive to operate, they will also help families across the country. on making significant savings on their energy bills.This is especially important at a time when many Americans are struggling with an inflation crisis on the gas pump and on our gas and utility bills.We moved mountains last year, and we’re about to have something deeply meaningful for the office President “.
“The Inflation Cut Act of 2022, which senators are about to pass, is the single most important measure to fight the climate emergency, cut costs for Americans, and put American workers and manufacturers at the forefront of a clean energy future,” Smith said. This legislation will be good for the economy, as it will create more than 1.4 million jobs by building local supply chains and manufacturing It will also be good for our health, as reduced air pollution from fossil fuels will save lives, and it is estimated that between 3,700 and 3,900 premature deaths will be avoided. Pre-moving to clean electrical appliances for example is affordable and cost-effective for people who don’t have thousands of dollars in their savings account. This bill will allow people to switch to clean energy. With more clean energy, they don’t have to worry as much about The geopolitics that caused so much of the recent rapid inflation of fossil fuels. We have to get it done now, and I look forward to celebrating once we cross the finish line. “.
The Inflation Control Act includes a new rebate program that reverses Senator Heinrich’s Zero Emissions Home Act to provide advance discounts at points of sale for the purchase and installation of electrical appliances and equipment in single-family homes and multi-family buildings, with additional support for low- and middle-income families.
The Latest Research of rewiring America indicates that the electrification provisions of the Inflation Control Act will enable one million low and middle-income families to switch to electricity. Combined with electrification provisions that offer tax deductions to American households, the Inflation Reduction Act will reduce carbon pollution in the United States by 40% below 2005 levels by 2030.
“When passed, the Inflation Reduction Act represents the future of America’s energy independence. With our current system being controlled by the petro-state and big oil dictatorships, the historic Inflation Reduction Act represents an alternative path forward,” said Ari Matusiak, CEO of Rewiring America. Key electrification provisions in the IRA are savings for American households, through direct rebates, including relief for low- and middle-income households, and making electrical appliances and vehicles more accessible. By passing this historic investment in electrification, leaders in Washington can provide Americans immediate relief from rising energy costs and hyperinflation, as well as reducing our endless dependence on fossil fuels.”
“We’re on the verge of a totally transformative bill. This is the bill that we’ve been waiting in many ways for decades for Congress to actually pass. Efficiency is electricity. If we want to save energy in our community, we need to electrify everything. It turns out that when we burn fossil fuels we lose About half the energy, every step along the way.“The Inflation Act will put us on a path to clean electricity and electricity,” said Dr. Leah Stokes, Senior Policy Adviser for Rewiring America.This path will allow us to tackle the climate crisis with a 75 percent solution of our current carbon pollution. We would save Americans across the country $1,800 a year on their energy bills if they had access to such clean technologies as the electric car, heat pump, heat pump, hot water heater, induction stove, and even solar panels. Clean energy investments will change this game We’ll see clean electricity at a pace and scale we’ve never seen before. We’ll see clean, electric machines spread across this country, and that’s critical.Our entire mission at Rewiring America is to supply one billion machines Electrolyte in this country, so we can’t wait. We must move away from the fossil fuel path, into a clean energy future, and create American jobs in this country. This is a transformative bill, we’re talking about creating industries in the United States, and that will make it easier for us to get the next clean energy investment through Congress.”
Heinrich notes as prepared for delivery:
Thank you very much for joining us.
Rewiring America has been a tremendous partner in our efforts to advance the vision of electrification in the United States
We have a growing alliance that is very excited to support across this country.
I am also honored to be joined today by my colleague and co-founder and co-chair of the Electrification Caucus, Senator Tina Smith of Minnesota.
I am so grateful for Senator Smith’s consistent and determined leadership over the past months – and year really – to ensure that we have found a way forward in our clean energy and electricity investments.
I’m not sure anyone would describe the US Senate as the most efficient organ.
But the clean energy and electricity investments we eventually secured in the Inflation Reduction Act of 2022 represent – by far – the most important steps Congress has ever taken to spur widespread deployment of high-efficiency, pollution-free electricity. techniques.
These electric technologies – from air source heat pumps for home heating and water systems to induction stoves and electric clothes dryers – have already leapfrogged their fossil-fueled alternatives in terms of efficiency and performance.
They can create significant health benefits by replacing the dirty fossil stoves and gas stoves that burn dangerous compounds in the indoor air of our homes.
This means fewer children with asthma and fewer elderly people with breathing problems that many of us don’t realize are caused by the devices in our homes.
When paired with clean, carbon-neutral power generation—something the Inflation Act also invests heavily in through investment and refurbished production tax credits—these electric technologies are the tools that will allow us to solve the climate crisis.
Since they are also more efficient and less expensive to operate, they will also help families across our country make significant savings on their energy bills.
This is especially important at a time when many Americans are struggling with an inflation crisis at the gas pump and in their gas and utility bills.
These cost savings are one of the main reasons why many of the country’s top economists have endorsed the inflation-reduction act.
Let me quote from a letter he sent to Congressional leadership and signed by 126 senior economists—including former Treasury secretaries, a former director of the Congressional Budget Office, Nobel Prize laureates, and former Vice Chairs of the Federal Reserve:
This legislation represents the single largest step yet in addressing the climate crisis. It is making major investments to catalyze the transition to cleaner, more efficient energy sources. It also invests in the current energy distribution system to make it more resilient, reduce household energy costs, and help protect American household budgets from future shocks.”
This is absolutely true.
And that’s exactly why we need to move quickly to get the Inflation Reduction Act into law.
Before I finish, I want to go into more detail about the specific piece of the invoice that I spent so much time working on.
That’s $4.5 billion in new consumer rebate at the point of sale for electrical home appliances.
These rebates mirror legislation it introduced last year called the Zero Emission Homes Act.
This new funding will be distributed to both state and tribal energy agencies as grants so they can implement high-efficiency electric home discount programs that can run through 2031.
Deductions will be allowed to go up to a maximum of $14,000 per household.
- $1750 for a water heater with a heat pump.
- $8000 for a heat pump to heat and cool spaces.
- $840 for an electric stove, stove, stove, oven, or clothes dryer with an electric heat pump.
- $4,000 to upgrade an electrical load service center – or breaker box.
- $1,600 for insulation, air sealing, and ventilation.
- $2,500 for electrical wiring.
These rebates will help flatten the initial costs of installing these devices, and help many Americans access the health, climate, and cost benefits of electricity.
The Inflation Control Act also includes new tax breaks to help more families buy new and used electric cars.
It includes significant investments to strengthen our manufacturing base of clean electrical technologies – from heat pumps and wind turbines to batteries, solar components and electric vehicles – right here in America.
And those renewed investment and production tax credits that I touched upon earlier are not just for wind and solar power generation.
I’m really excited that we’re defending my proposal for an investment tax credit for energy storage, which is necessary to enhance reliability and resilience in the grid.
This will be 30% of the integrated transportation cost for independent warehousing projects.
We have seen how these types of credits have stimulated investment in wind energy projects over the past decade.
And I’m pretty confident they can do the same for storage.
There is a lot to unpack on this bill.
I am happy to hear from my colleague how she feels the most about this.