On August 16, 2022, President Biden signed the landmark Inflation Reduction Act of 2022– H.R.5376– into law, intending to lower costs on prescription drugs, health care, and energy. Here, we highlight the R&D opportunities associated with the new law which provides an estimated total of $369 billion in energy and climate spending.
Climate Research: The Inflation Reduction Act additionally secures $3.3 billion for NOAA over the next 5 years to conduct climate and weather-related research and bolster conservation efforts. This includes $2.6 billion in grants to preserve and revitalize coastal habitats and communities, and nearly $50 million in climate research grants. Over $20 billion was allotted for the USDA to subsidize climate-smart agricultural practices and expand conservation efforts.
Lab Infrastructure: Additionally, the Department of Energy received $2 billion across the Office of Science (OS), Office of Fossil Energy and Carbon Management (FECM), Office of Nuclear Energy (NE), and the Office of Energy Efficiency and Renewable Energy (EERE) through FY27 to upgrade National Lab infrastructure to accelerate breakthrough energy research.
Climate Justice: The new law appropriates over $60 billion to federal agencies to invest in low-income and marginalized communities as part of its environmental justice priorities. These investments also include $27 billion to establish the Greenhouse Gas Reduction Fund, $3 billion to the Environmental and Climate Justice Block Grants, and $3 billion to the Neighborhood Access and Equity Grants. Nearly $35 billion is appropriated to EPA programs with the goal of reducing emissions and addressing climate change, in the largest ever investment to date.
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