President Joe Biden is expected to sign the Inflation Reduction Act today.

Its main theme is addressing the threat of climate change, and clean-energy advocates in Minnesota are cheering its passage. Late last week, Congress sent the roughly $400 billion package to the president's desk, with supporters saying it will drive down greenhouse-gas emissions 40% by 2030.

Michael Noble, executive director of the group Fresh Energy, said a key element is the ten-year extension of tax credits for wind and solar projects, as opposed to shorter renewals, which created less certainty.

"So, businesses can plan, utilities can plan, homeowners can plan," Noble outlined. "And make sure that they buy that new heat pump or buy that new electric car, or buy that new wind farm with the tax credit from the federal government."

He pointed out leaning more on renewables will help energy costs go down in the long run for customers. Researcher shows sources like wind and solar are now cheaper to produce than fossil fuels.

Right now, 52% of electricity in Minnesota is carbon-free. The bill was opposed by congressional Republicans, while analysts noted it leaves out some important components, including bigger investments in reducing farm emissions.

The Inflation Reduction Act also aims to help rural communities by encouraging electric cooperatives to invest in clean energy.

Erik Hatlestad, energy democracy program director for CURE Minnesota, said co-ops still largely rely on fossil fuels because they have not had equal access to federal incentives for renewables like investor-owned utilities have. Instead, they have often had to work with third parties.

"Now, they'll be directly paid to cooperatives," Hatlestad explained. "It's a real leveling of the playing field when it comes to clean-energy incentives."

He suggested it could also help with the nearly $100 billion in debt co-ops have incurred due to outdated infrastructure. Supporters of the plan argued it will also address inequities in fighting climate change. For the first time, there will be an expanded tax incentive for wind and solar projects built or connected to under-resourced or Native communities.

Clean-energy products, such as electric vehicles or home heat pump systems, might seem out of reach for a lot of people. But with federal incentives and other support, more Wisconsinites - including low-income residents - could soon have easier access.

Last year's federal Inflation Reduction Act includes a mix of tax credits and rebates for products designed to make homes more energy efficient and save drivers some green if they want to buy an EV.

Francisco Sayu, emerging technology director for the group RENEW Wisconsin, said there has long been an exclusive tone tied to the renewable-energy market. But he said the new incentives are a game-changer.

"If you're a renter," said Sayu, "there are rebates and tax credits for equipment that you can take with you when you move."

One example is a portable window heat pump that can be used as an air conditioner.

Sayu acknowledged implementation of the IRA is complex, meaning the rebates aren't available yet.

Separately, the Department of Housing and Urban Development recently announced funding from the Act for owners of multifamily units - serving low-income residents - to seek grants and loans to improve the energy efficiency of their properties.

As for electric vehicles, Sayu said there are now more options on the used market as some of the earlier models begin to age. And the federal incentives can be used for previously owned EV's.

"If you purchase an electric vehicle that is priced below $25,000 and it's at least three years old," said Sayu, "you qualify for a 30% tax credit up to $4,000. And that makes electric vehicles pretty competitive with internal-combustion cars."

While states are awaiting guidance on how to phase in some of the rebates, Sayu said Wisconsin is in a good position because it already has a built-in statewide entity that carries out these types of programs.

The state's Public Service Commission says that entity, called Focus on Energy, will directly offer IRA programs across Wisconsin once funding is made available.




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Amid rising energy costs and inflation, energy advocates said they have seen a jump in interest in community solar.

Luanne McGovern, legislative chair and board member of the West Virginia Highlands Conservancy, explained community solar lets individuals, businesses and organizations buy a "share" in a community solar project and in turn, receive a credit on their monthly electric bill.

She explained community solar projects could potentially lower energy costs for residents and increase investment in the state, pointing to the companies eyeing West Virginia land for new solar farm infrastructure.

"Abandoned mine lands, closed-down power plants, lots of places where solar arrays could be built quite easily," McGovern outlined.

At least 18 states nationwide have passed legislation changing how utilities are regulated in order to approve community solar. Two bills introduced by West Virginia state lawmakers this year, Senate Bill 627 and House Bill 2159, would have made it easier to implement community solar projects.

McGovern added for a variety of reasons, many people cannot install individual solar panels on their home.

"It might be where they're located, they don't have enough sunlight, there's trees, maybe they rent," McGovern noted. "Maybe they're in a homeowner's association that doesn't allow solar panels, for a lot of reasons, people that want to have solar energy can't have access at their home."

According to the renewable-energy firm EnergySage, most community solar customers see savings ranging between 5% and 15% of their annual electricity costs. Critics countered solar farms take up space, and emphasized community solar users often are not eligible for state-based incentives.

A new report analyzed the potential impact of the Regional Greenhouse Gas Initiative on Pennsylvania emissions, power generation, revenue, and jobs.

The initiative's goal is to reduce carbon emissions through a cap-and-trade system. It has been in existence since 2009 and Pennsylvania would be the 12th state to join the program.

Maya Domeshek, research associate for the group Resources For The Future and the report's co-author, said they looked at what would happen to the current power generation mix and emissions in Pennsylvania if the state remained outside the initiative, or if it joined. They found by joining, Pennsylvania's greenhouse gas emissions would fall faster, as well as emissions in the overall region.

"We also find that fall in emissions in Pennsylvania primarily comes from reduction in generation and fossil-fuel plants, particularly coal plants," Domeshek reported. "It also comes with an increase in generation at renewable facilities that will be built going forward."

Domeshek added a lot of states taking part in the initiative are using it to help meet their climate goals. Pennsylvania also has a climate commitment and wrote the regulations to join the initiative in 2022, but pending lawsuits are preventing the program from going into effect.

One of the report's six conclusions was emissions reductions are achieved with small changes in retail electricity prices. Domeshek explained they found joining the initiative would not increase people's electric bills by much. She emphasized although fossil fuel plants would be paying more in a cap-and-trade system, the state would ultimately use less power from the plants.

"As the generation mix changes over the next decade, instead of seeing a large increase in retail electricity prices because of those compliance costs of the program, we're likely to see very little impact," Domeshek asserted. "It's even possible that we could see electricity bills fall."

The research also found joining the initiative is unlikely to impact overall employment in the state and Pennsylvania could use some of the program revenue to benefit communities affected by phasing out coal.