2022 Climate Bill Funds Renewables, EVs, Battery Storage, and Extends Credits
There are many funding areas in this bill. This article highlights some of the $370 million funding for energy and climate initiatives.
Bill Funding Highlights
1. Renewable energy credits have been extended and modified in many areas.
2. $1 billion of funding for electric loans for Rural Electric Co-ops for energy storage projects. The funding is through 2031 and is in the form of forgiveness of 50% of loans taken out for storage projects.
3. $3 billion of funding for distressed agricultural operation loans, with funds available through 2031.
4. $4 billion of funding for projects that “improve energy or water efficiency, enhance indoor air quality or sustainability, implement building maters or processes, energy storage, or building electrification strategies, or address climate resilience, of an eligible property”.
5. $2.6 billion for loans and grants to local and tribal governments, non-profit and Higher-Ed institutions for conservation activities in coastal and marine habitat areas.
6. $100 million for hurricane hunter aircraft.
7. $4.3 billion for a HOMES rebate program to promote energy efficiency and home upgrades.
8. $225 million to Indian Tribes to implement a high-efficiency electric home rebate program.
9. $5 billion for energy infrastructure projects to replace infrastructure that is no longer operational or build facilities to reduce air pollutants or greenhouse gases.
10. $2 billion in funding for transmission projects.
11. $100 million for interregional and offshore wind projects.
12. $5.8 billion for industrial energy retrofits.
13. A zero-emission nuclear power production tax credit for existing nuclear power plants.
14. Clean Hydrogen Production Tax Credits for qualified clean hydrogen produced at a qualified clean hydrogen production facility - building on clean hydrogen hubs in the Infrastructure Investment and Jobs Act, passed earlier this year.
15. Credits for electric vehicles assembled in North America and not subject to sales caps.
Application process and how to be prepared
The next step will be to become familiar with the matching grants, grants, or tax incentives included in the Act and how they may apply to your business or project needs. The majority of the funding is spread evenly through 2031. Having project plans ready as soon as possible will be to your organization's benefit. Also, having staff experienced in federal grant applications either internally or through an outside consultant will help navigate the process and help ensure that proper internal controls are in place over program applications and spending that may be audited on program completion.
As the methods for applications and release of funding become established, we’ll keep you up to date on the logistics for applying for funding your potential projects.
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About Russ Hissom - Article Author
Russ is the owner of Utility Accounting Education Specialists a firm that provides power utilities consulting services and online/on-demand courses on accounting, finance, FERC best-practices, improving business processes, and implementing strategy. Russ is passionate about the Power and Utilities Industry and his goal is to share industry best practices to help better your business and enhance your career knowledge. He has over 35 years serving electric investor-owned and public power utilities, electric cooperatives, broadband providers, and water, wastewater, and gas utilities as a past partner in a national public accounting and consulting firm's power and utilities practice. Russ was named one of the 2021 Top Voices in the Energy Central Community by EnergyBiz Network.
Find out more about Utility Accounting Education Specialists here or you can reach Russ at [email protected]
The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by UAES. You should seek formal advice on this topic from your accounting advisor.