It’s time for an all-out national mobilization to defeat the climate crisis.

President Biden and Congress must lead the charge to defeat the climate crisis and build a thriving, just and inclusive clean energy future. Join our work to help make it happen.

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It’s time for an all-out national mobilization to defeat the climate crisis.

President Biden and Congress must lead the charge to defeat the climate crisis and build a thriving, just and inclusive clean energy future. Join our work to help make it happen.

The Pivotal Role for States in Implementing the IRA

Download these short fact sheets that show how leaders in Michigan, Nevada, Wisconsin and other states can take full advantage of all the discretionary funding in the IRA.

Michigan Governor Gretchen Whitmer (© 2015 Flickr/Gerald R. Ford School of Public Policy, University of Michigan, CC BY-ND 2.0)

Last updated September 26, 2022

After more than a year of negotiations in Congress and decades of tireless work by advocates, President Biden has now signed the Inflation Reduction Act (IRA) into law. It’s a historic moment—the single largest single federal investment in climate action and clean energy in American history. 

With transformational climate investments signed into law, it's now up to state leaders to pick up the baton. How states use much of this money will have a huge impact on its overall impact. 
 
States across the country have already set ambitious climate goals like 100 percent clean electricity requirements and bold clean car standards. The IRA can help states hit those goals while creating good union jobs, lowering energy costs for Americans across the country, and investing in communities disproportionately affected by pollution and climate impacts. 

For example:

  • Climate Pollution Reduction Grants — Evergreen fought for and secured a new $5 billion EPA grant program to provide competitive awards to states, municipalities, tribes or air pollution agencies that support the establishment and implementation of plans to to reduce climate pollution. This program could support states and other subnational actors in the implementation of clean electricity policies; programs driving adoption of zero-emission vehicles and buildings; deployment of EV charging infrastructure; incentives for smart-growth, housing and transit-oriented development; climate-smart agriculture and lands conservation, and more. In President Biden’s American Jobs Plan, the EPA should focus these grants especially on supporting and spreading state progress towards 100% clean electricity. 

  • Greenhouse Gas Reduction Fund — Within the Greenhouse Gas Reduction Fund, the IRA provides $7 billion to programs aimed at deploying clean energy, like rooftop solar, and pollution-reducing technologies in low-income and disadvantaged communities. A $20 billion allocation for a Clean Energy Technology Accelerator has the potential to build upon and catalyze new clean energy financing ecosystems in states across the country. The EPA and states can use this fund to incubate new green banks and clean energy financing institutions, scale up existing efforts, and resource community institutions like Community Development Financial Institutions (CDFIs). During the last decade, there have been 23 green banks created in 17 states & D.C. These institutions have been a critical tool to leverage public dollars and secure significant additional investment. President Biden proposed scaling this proven model in his American Jobs Plan. $8 billion of the Accelerator funding is reserved for eligible institutions that provide financial assistance for clean energy projects benefiting disadvantaged communities, ensuring no less than 40% of the funding available is prioritized for these projects. According to the Coalition for Green Capital, every $1 invested in the accelerator is expected to leverage $9 in total public and private sector investment, and every $1 invested in low-income community clean energy development would leverage $5 in total investment.

  • Other State Leadership Opportunities — The IRA’s discretionary grants for states are significant . Individual states will prioritize the funding opportunities based on their own climate goals and policy priorities. In the buildings sector, opportunities include $8.6 billion is available for residential energy efficiency rebates, and $1 billion is allocated for assistance in upgrading building codes. The IRA also contains numerous opportunities for states to build on their previous leadership in clean transportation, including $1 billion to convert heavy-duty vehicles to zero emission, $3 billion to reduce pollution at ports, $3 billion for Neighborhood Access and Equity Grants and $5 million to set ambitious vehicle emissions standards. Funding is also available to states for a multitude of other purposes, including forest conservation and coastal resiliency.

In the coming months, Evergreen will work to unpack all the ways the climate and clean energy investments in the IRA will transform the state level landscape for climate action. 

We’ve put together short fact sheets that make it clear how leaders in Michigan, Nevada, Wisconsin and other states can take full advantage of all the discretionary funding in the IRA and how the programs established in this new law align with their existing climate and environmental justice strategies. Be sure to check back here for updates—we’ll be adding more fact sheets on how other states can be key engines in the United States’ transition to a clean energy future soon.  

Maryland Fact Sheet Michigan Fact Sheet Minnesota Fact Sheet New Jersey Fact Sheet New Mexico Fact Sheet Nevada Fact Sheet Pennsylvania Fact Sheet Wisconsin Fact Sheet