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Distribution Challenges Associated with Inflation Reduction Act

Billions in federal dollars soon to be available for facilities. Next step is how to distribute it.   December 21, 2022

By Dave Lubach, Managing Editor

Billions of dollars from the Inflation Reduction Act will soon be available from the federal government for institutions and organizations to spend on clean energy technologies. The next step is to ensure the funding is used wisely and avoids waste. 

A recent New York Times article outlined the challenges the government faces in distributing the funds. The distribution challenges will also likely include Republican investigations into how the Biden Administration handles the tax rebates, loans and incentives associated with the law, as control of the House of Representatives switches next month. 

“I’ve spent a fair amount of time listening to people who are anxious to invest in the United States as a result of this legislation and are preparing business plans, assuming that those tax credits will have certainty,” says John Podesta, the Biden Administration’s clean energy adviser. Podesta added that the federal agencies are on track to issue official guidance on distribution for products “by the end of the year and early next year.” 

To help organizations navigate the law, the White House released a guidebook designed to help companies and municipal and state governments.  

Among the kinds of projects designed to meet the Inflation Reduction Act include adding electric vehicles, moving to wind, solar or other clean energy power sources. The projects are an essential part of Biden’s climate pledge to reduce greenhouse gas emissions in the U.S. to at least 50 percent below 2005 levels. 

Dave Lubach is managing editor of the Facilities Market. 


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