Garamendi Applauds the Inflation Reduction Act’s Introduction in U.S. Senate to Deliver Historic Progress on Climate Change

WASHINGTON, D.C.—Today, Congressman John Garamendi (D-CA) issued the following statement in support of Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin’s (D-WV) bill, the “Inflation Reduction Act of 2022,” which will be considered under Budget Reconciliation in the U.S. Senate and therefore will not be subject to the filibuster rule:

“I am incredibly pleased that Senate Democrats have come to an agreement with the ‘Inflation Reduction Act of 2022,’” Garamendi said. “This historic legislation provides over $369 billion—the single largest investment ever—to tackle the climate crisis. With the clean energy programs funded in this bill, we will reduce greenhouse gas emissions by 40% by 2030. This critically important funding will make the air we breathe and the water we drink cleaner and spur a once-in-a-generation investment in research and technology to mitigate the risks posed by climate change. Areas like the I-80 Biomanufacturing research corridor in my Congressional District will benefit from the $2 billion in the legislation to accelerate breakthrough clean energy research, the $27 billion to support the deployment of new technologies to reduce pollution, and the $60 billion in environmental justice priorities to drive investments into disadvantaged communities in the Bay Area.

“The ‘Inflation Reduction Act’ also invests $200 billion in deficit reduction to fight inflation, expands the Affordable Care Act to ensure affordable healthcare is available to all, and will finally allow Medicare to negotiate lower prescription drug prices to reduce healthcare costs for millions of Americans. These investments are fully paid for by closing tax loopholes on wealthy individuals and corporations,” Garamendi continued.

“I look forward to supporting the ‘Inflation Reduction Act’ when it comes to a vote in the U.S. House of Representatives. This legislation will deliver generational support for climate research, social and economic justice, and clean energy tax credits directly in our communities,” Garamendi concluded.  

Below is a summary of the provisions in the “Inflation Reduction Act” prepared by the U.S. Senate Democratic Caucus:

The Inflation Reduction Act:

1. Lowers energy costs for Americans through policies that will lower prices at the pump and on electricity bills, help consumers afford technologies that will lower emissions and energy prices, and reduce costs that would otherwise be passed on to them.
2. Increases American energy security through policies to support energy reliability and cleaner production coupled with historic investments in American clean energy manufacturing to lessen our reliance on China, ensuring that the transition to a clean economy creates millions of American manufacturing jobs, and is powered by American-made clean technologies.
3. Invests in decarbonizing all sectors of the economy through targeted federal support of innovative climate solutions.
4. Focuses investments into disadvantaged communities to ensure that communities that are too often left behind will share in the benefits of the transition to a clean economy.
5. Supports resilient rural communities by investing in farmers and forestland owners to be part of growing climate solutions, and by ensuring rural communities can better adapt to a rapidly changing climate.
6. Lower Consumer Energy Costs

This bill will provide a range of incentives to consumers to relieve the high costs of energy and decrease utility bills. This includes direct consumer incentives to buy energy efficient and electric appliances, clean vehicles, and rooftop-solar, and invest in home energy efficiency, with a significant portion of the funding going to lower- income households and disadvantaged communities.

1. • • $9 billion in consumer home energy rebate programs, focused on low- income consumers, to electrify home appliances and for energy-efficient retrofits.
     • 10 years of consumer tax credits to make homes energy efficient and run on clean energy, making heat pumps, rooftop solar, electric HVAC, and water heaters more affordable.
     • $4,000 consumer tax credit for lower/middle income individuals to buy used- clean vehicles, and up to $7,500 tax credit to buy new clean vehicles.
     • $1 billion grant program to make affordable housing more energy efficient.
1. American Energy Security and Domestic Manufacturing

This bill will support energy reliability and cleaner energy production coupled with historic investments in American clean energy manufacturing. It includes over $60 billion for on-shore clean energy manufacturing in the U.S. across the full supply chain of clean energy and transportation technologies. These manufacturing incentives will help alleviate inflation and reduce the risk of future price shocks by bringing down the cost of clean energy and clean vehicles and relieving supply chain bottlenecks.

1. • • Production tax credits to accelerate U.S. manufacturing of solar panels, wind turbines, batteries, and critical minerals processing, estimated to invest $30 billion.
     • $10 billion investment tax credit to build clean technology manufacturing facilities, like facilities that make electric vehicles, wind turbines, and solar panels.
     • $500 million in the Defense Production Act for heat pumps and critical minerals processing.
     • $2 billion in grants to retool existing auto manufacturing facilities to manufacture clean vehicles, ensuring that auto manufacturing jobs stay in the communities that depend on them.
     • Up to $20 billion in loans to build new clean vehicle manufacturing facilities across the country.
     • $2 billion for National Labs to accelerate breakthrough energy research.
2. Decarbonize the Economy

The investments in this bill will reduce emissions in every sector of the economy, substantially reducing emissions from electricity production, transportation, industrial manufacturing, buildings, and agriculture.

• • • Tax credits for clean sources of electricity and energy storage and roughly $30 billion in targeted grant and loan programs for states and electric utilities to accelerate the transition to clean electricity.
    • Tax credits and grants for clean fuels and clean commercial vehicles to reduce emissions from all parts of the transportation sector.
    • Grants and tax credits to reduce emissions from industrial manufacturing processes, including almost $6 billion for a new Advanced Industrial Facilities Deployment Program to reduce emissions from the largest industrial emitters like chemical, steel, and cement plants.
    • Over $9 billion for Federal procurement of American-made clean technologies to create a stable market for clean products, including $3 billion for the U.S. Postal Service to purchase zero-emission vehicles.
    • $27 billion clean energy technology accelerator to support the deployment of technologies to reduce emissions, especially in disadvantaged communities.
    • A Methane Emissions Reduction Program to reduce the leaks from the production and distribution of natural gas.

3. Invest in Communities and Environmental Justice

Building on regular engagement with EJ leaders from across the country, this package includes over $60 billion in environmental justice priorities to drive investments into disadvantaged communities. Some of the highlights include:

3. • • The Environmental and Climate Justice Block Grants, funded at $3 billion, invest in community-led projects in disadvantaged communities and community capacity-building centers to address disproportionate environmental and public health harms related to pollution and climate change.
     • The Neighborhood Access and Equity Grants, funded at $3 billion, support neighborhood equity, safety, and affordable transportation access with competitive grants to reconnect communities divided by existing infrastructure barriers, mitigate negative impacts of transportation facilities or construction projects on disadvantaged or underserved communities, and support equitable transportation planning and community engagement activities.
     • Grants to Reduce Air Pollution at Ports, funded at $3 billion, support the purchase and installation of zero-emission equipment and technology at ports.
     • $1 billion for clean heavy-duty vehicles, like school and transit buses and garbage trucks.
     • Some of the previously mentioned programs that focus on disadvantaged and low-income communities are also important to environmental justice, like the technology accelerator and consumer home energy rebate programs. In addition, many of the clean energy tax credits include either a bonus or set-aside structure to drive investments and economic development in disadvantaged communities.
4. Farmers, Forestland Owners, and Resilient Rural Communities

This bill will make historic investments to ensure that rural communities are at the forefront of climate solutions. The investments affirm the central role of agricultural producers and forest landowners in our climate solutions by investing in climate- smart agriculture, forest restoration, and land conservation. It also makes significant investments in clean energy development in rural communities.

• • • More than $20 billion to support climate-smart agriculture practices.
    • $5 billion in grants to support healthy, fire resilient forests, forest conservation, and urban tree planting.
    • Tax credits and grants to support the domestic production of biofuels, and to build the infrastructure needed for sustainable aviation fuel and other biofuels.
    • $2.6 billion in grants to conserve and restore coastal habitats and protect communities that depend on those habitats.