What you need to know: California today commemorates two years of President Biden’s Inflation Reduction Act (IRA), which has provided record investments furthering the state’s ambitious climate action goals and historic infrastructure agenda.
SACRAMENTO – In the two years since President Biden signed the Inflation Reduction Act into law, California has received billions of dollars for climate and clean energy projects — creating thousands of good paying jobs.
Combined with the Bipartisan Infrastructure Law and historic state investments, the Biden-Harris Administration is helping remake California’s infrastructure – from new clean energy and power grid improvements to transit and high-speed rail.
California is tracking many of these projects on build.ca.gov, which now features a new checklist to help projects build with equity in mind.
“Over the past two years, California has experienced countless climate extremes – going from record drought to record rains in a matter of weeks, historic heat waves, and massive wildfires. The Inflation Reduction Act couldn’t have come at a more pivotal time, bringing billions of dollars in investments to California, creating thousands of green jobs and cutting costs for Californians. The Biden-Harris Administration is helping California build more, faster – and we’re already seeing the benefits in our communities.”
Governor Gavin Newsom
Beyond supporting record climate investments for California, the IRA has significantly reduced inflation. In August 2022, when the IRA was signed into law, inflation was 8.4%. As of yesterday, inflation in the U.S. is now below 3%.
Here’s how California has benefited from the Inflation Reduction Act:
- Over $1.6 billion in tax breaks to boost energy efficiency in homes in 2023 alone
- Nearly $600 million to provide clean and efficient energy upgrades to low and moderate income households.
- Over $500 million from the US EPA to reinforce California’s fight against the climate crisis and to eliminate greenhouse gas emissions and other harmful air pollution
- Up to $450 million for the state’s green banks to deliver accessible financing to clean energy projects throughout California, mobilize private capital, and deploy key climate solutions in low-income and disadvantaged communities
- Over $249 million from the US Environmental Protection Agency for low-income solar programs
- Nearly $200 million from the US Environmental Protection Agency for environmental and climate justice efforts to increase underserved community capacity and resilience
- Over $168 million to add 2,600 electric vehicle charging stations in rural and disadvantaged areas across the state, and over $63 million to upgrade existing EV charging infrastructure
- $103 million from the USDA for maintaining urban trees, forests, and green spaces
- Over $92 million from the USDA to support agricultural producers and rural small businesses in implementing renewable energy systems or to make energy efficiency improvements
- Over $88 million to help California school districts purchase clean school buses
- $70 million available to help California accelerate restoration of the Salton Sea
- Nearly $60 million from the USDA to invest in on-the-ground conservation activities implemented by farmers, ranchers and forest landowners
- $21 million from the US DOI and US DOE to bolster tribal climate resilience and home electrification
- Up to $24,500 for Californians to purchase a Zero Emission Vehicle, in combination with state investments
- 14,000 jobs created through investments in Caltrain and California’s High Speed Rail
- Tax credits for small business owners for energy efficient upgrades
