Abstract
The electric power sector is the second-largest producer of greenhouse gases (GHG). Specifically, in 2019, 5,230 million metric tons of carbon dioxide were released in the United States (US) because of energy-related activities. The Inflation Reduction Act has allocated $369 billion for clean energy solutions. This is the most significant piece of climate change legislation in US history. The Inflation Reduction Act (IRA) aims to develop clean energy resources while lowering inflation. This legislation will have a significant impact on the goal of reducing GHG emissions 50-52% by 2030, but it is not enough to get the job done. Legislation and the correct implementation of it will reduce GHG emissions 50% by 2030. The US Department of Defense needs to redirect 1.75% of its funding toward the IRA annually over the next seven years.
Problem and Goals
Electric power is a key resource for human development. We use electricity for so many things that it is no surprise electric power is the second-largest producer of greenhouse gas (GHG). In 2019 the world produced 33,621.5 million metric tons of energy-related carbon dioxide (“How Much Carbon Dioxide”). The U S is the second-largest producer of carbon dioxide producing 5,130 metric tons in 2019. Being such a large contributor, the US needs drastic execution of energy-related solutions. Currently, we have about six years left before we exhaust our carbon budget for limiting the global temperature change to 1.5 degrees Celsius. Given the urgency, the US aims to reduce GHG emissions and reach our Paris Agreement goals. How will the United States use clean energy to reduce greenhouse gas emissions drastically? Legislation and the correct implementation of it will reduce GHG emissions 50-52% by 2030.
Inflation Reduction Act
The current US administration has made climate change a top priority. The IRA is the most significant piece of climate change legislation to be passed in US history. This act aims to lower inflation but mainly focuses on building a clean energy economy. There are multiple ways the IRA tries to deal with this problem, one of them being tax credit programs ("Inflation Reduction Act of 2022." Businesses and taxpayers can receive an installment tax credit and a production tax credit until 2025. To be eligible for both credits one must be involved in multiple solar, wind, municipal solid waste, geothermal (electric), and tidal technologies. Activities eligible for the investment tax credit are energy storage technologies, microgrid controllers, fuel cells, geothermal (heat pump and direct use), combined heat & power, microturbines, and interconnection costs. To be eligible for just the production tax credit one must be involved in the biomass, landfill gas, hydroelectric, marine, and hydrokinetic technology. After January 1st, 2025, the clean electricity tax credit will replace the investment and production tax credit. For projects greater than 1 MWac the investment tax credit can be over 30% credit and the production tax credit will be 2.75¢ per kWh produced. For projects greater than 1 MWac there is a 6% credit available for investment tax credits and .5¢ per kWh for production tax credits. There also are bonus credits available for domestic content minimums, low-income communities, Native American land, and economic benefit projects ("By the Numbers: The Inflation Reduction Act")
Sustainable Households
Along with the large-scale tax credits for businesses, some programs support the implementation of clean energy for individuals. Households taking advantage of the clean energy and electric vehicle tax credits will save more than $1,000 per year. Additionally, there are $14,000 in consumer rebates available for households buying heat pumps and other energy-efficient appliances. Under the IRA, 7.5 million more households will be able to install solar panels with a 30% tax credit saving households $300 per year. Overall, this act will be responsible for 950 million solar panels, 120,000 wind turbines, and 2,300 grid-scale battery plans. The IRA also enables tax credit monetization and allocates $11.7 billion to the Loan Programs Office for new loans and the creation of the Energy Infrastructure Reinvestment Program ("By the Numbers: The Inflation Reduction Act").
Correct Implementation
Correct IRA implementation is crucial in maximizing its positive effects. The US government must promote the implementation of clean energy households heavily and make it known to the American people that these tax incentives are available. If the American people are unaware that these tax credit programs are available, it is anticipated that this will lead to a significant decrease in the number of individuals and enterprises that adopt sustainable practices in their households or businesses. Making these tax credit programs known to the American people can be done through advertisement and communication with contractors and home improvement stores like Home Depot and Lowes, and tax consultants. Communicating with these parties will improve the understanding of the programs and greatly impact their application. Additionally, these processes must be made easy so that it is not difficult to receive the monetary benefits implementing a sustainable household or business can provide. Simplifying the tax credit process will encourage the chain reaction of widespread implementation.
Another key aspect is to consider current state climate change legislation. It is important to allocate more federal funding and efforts toward states with less climate change legislation.
What Needs to Happen
With the current efforts we are projecting a 39% greenhouse gas emission reduction at the moderate level with a 37% reduction on the low end and a 41% reduction on the high end ("By the Numbers: The Inflation Reduction Act"). This will fall short of our goal of 50% reduction by a whopping 11%. If we want to reach the goal, more needs to be done. I propose redirecting a small portion of the Department of Defense funding for climate change action. Currently, the Department of Defense has $845.75 billion in total obligations ("Department of Defense"). Since climate change is the largest threat to the United States, it is clear that the department responsible for defending the country against such threats should use its resources to eliminate it. To reach the 50% GHG emission reduction goal by 2030 the IRA will require a total funding level of $437 billion. An additional $104 billion is needed over seven years which would require $14.86 billion from the Department of Defense budget annually. This is only 1.76% of the budget per year which is taking a small portion of the department's funding over the next seven years. Why would the Department of Defense not spare this small amount of its total funding to eliminate the most dangerous threat to the American people? This additional $104 billion is needed to increase the amount of solar, geothermal, wind, and hydroelectric energy producers and providers. The funding also will be used to increase the incentive value for the tax credit programs. As stated earlier, the solar panel credit which returns to consumers 30% of the money they spent, could move the credit up to 40-50%. As the severity of climate change increases, natural disasters and humanitarian crises also will increase. Redirecting the Department of Defense funds can ensure that we are minimizing the risk associated with this climate crisis. Additionally, redirecting the Department of Defense funding will send an incredibly strong message to the American people about the urgency of the situation we currently confront.
Achieving Department of Defense Funding Redirection
To meet our goals a declaration of national emergency, as proposed by the Climate Emergency Act of 2021, must be enacted to improve the funding of the IRA. Achieving the needed redirect of funding requires a declaration of national emergency order to bypass the political motivations in Congress. Additionally, this would bypass the time-consuming decision-making process that is typically encountered when dealing with Congress. Because the Biden administration considers climate change a top priority, it is clear there is no better time to declare emergency action. If the next administration does not hold climate change as a top priority this declaration could be much harder to achieve. The short-term success will lead to long-term application. When redirecting the Department of Defense funds to the IRA is successful, it will show politicians and the American people that the actions that were taken were absolutely necessary in protecting the well-being of the United States and the rest of the world. Additionally, Redirecting Department of Defense funding, which the Department claims it has begun (“Tackling the Climate Crisis”), shows the rest of the world that the United States is serious about reaching the goals that have been set. This increases our credibility as a nation and puts pressure on the rest of the world to keep up with the financial contributions the United States is making. On top of that, this will support the United States being a clean energy industry leader. Although this process might entice legal battles and scrutiny against the president it is necessary to protect life, liberty, and the pursuit of happiness.
Overview
Energy-related solutions are needed to reduce GHG 50% by 2030. This is because the electric power sector is the second largest producer of GHG emissions. The IRA is the most powerful legislation to be passed regarding climate change and it is simply not enough to get us to our Paris Agreement goals. As the carbon budget clock ticks away, the urgency related to this issue increases drastically. Climate change is the largest threat to the United States and the world so Department of Defense funding must be redirected to fight climate change. By increasing the IRA funding, we can increase the amount of renewable energy producers and the tax credit incentives. To achieve the feat of redirecting the Department of Defense funds a declaration of emergency is needed to ensure that politics do not stand in the way and that this can be enacted as soon as possible. Not only does this need to happen to rescue the United States but to save the planet.
Works Cited
Barbanell, Melissa. "A Brief Summary of the Climate and Energy Provisions of the Inflation Reduction Act of 2022." World Resources Institute, 28 Oct. 2022, www.wri.org/update/brief-summary-climate-and-energy-provisions-inflation-reduction-act-2022.
"By the Numbers: The Inflation Reduction Act." The White House, 8 Mar. 2023, www.whitehouse.gov/briefing-room/statements-releases/2022/08/15/by-the-numbers-the-inflation-reduction-act/.
"Department of Defense." USAspending.Gov, www.usaspending.gov/agency/department-of-defense?fy=2023. Accessed 16 May 2023.
"How Much Carbon Dioxide Does the United States and the World Emit Each Year from Energy Sources?" How Much Carbon Dioxide Does the United States and the World Emit Each Year from Energy Sources? | U.S. Geological Survey, www.usgs.gov/faqs/how-much-carbon-dioxide-does-united-states-and-world-emit-each-year-energy-sources. Accessed 16 May 2023.
"Inflation Reduction Act of 2022." Energy.Gov, www.energy.gov/lpo/inflation-reduction-act-2022. Accessed 16 May 2023.
"The Inflation Reduction Act." EPA, www.epa.gov/green-power-markets/inflation-reduction-act#Clean%20ITC. Accessed 16 May 2023.
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