Biden prevents clawback of 84% of IRA Clean Energy Grants

A White House official confirmed on Friday that the administration of U.S. president Joe Biden has protected around 84% or $96.7 billion worth of clean energy grants made by its signature climate legislation from being clawed back by any future administration.

Why it's important

The Inflation Reduction Act grants have "been obligated" meaning that contracts have been signed by U.S. agencies with recipients. The incoming administration hopes that this will continue to help the deployment of clean energies even after Donald Trump's inauguration on Monday, a climate-change skeptic and pledge to rescind any unspent IRA money.

By the Numbers

These are some examples of programs which have been committed. Around $8.8 billion or 94% of the Department of Energy's funding for state rebate programs on energy efficient appliances and home retrofits has been committed. The U.S. Department of Agriculture's program to assist electric co-ops in obtaining more clean energy was 97% funded, or $9.45 billion. The Environmental Protection Agency has obligated $38 billion, including 100% of a fund for greenhouse gas reduction and 94% of its IRA grant program.

Unsolicited, $11 billion in funding has been announced. A large portion of this is for the upcoming fiscal year and USDA programs.

KEY QUOTES

Kristina Cost, Biden's deputy assistant and director of the White House clean energy office, said: "This is a big step forward and will ensure that these investments flow to the communities and beneficiaries as intended."

Costa explained that even though the funds of $11 billion are not yet committed, their public announcement "creates a certain amount of political pressure" to keep them, especially in areas such as rural districts and Republican states. (Reporting and Editing by Frances Kerry.)

(source: Reuters)