- Biden swipes at Republicans on anniversary of major climate, health care law
President Biden took a victory lap Wednesday on the anniversary of the signing of the Inflation Reduction Act, swiping at Republicans who uniformly opposed the sweeping legislation that contained provisions to lower health care costs and tackle the climate crisis.
Biden hosted a ceremony at the White House with Democratic leaders and private sector officials to commemorate one year since the law went into effect. He touted how the law has spurred private sector investments, created jobs and incentivized steps to address climate change, such as the use of electric heat pumps and the installation of solar panels.
Over the course of his nearly 30-minute speech, Biden took several opportunities to remind the public that Republicans didn’t provide a single vote for the law’s passage in 2022.
“It fell entirely to Democrats to deliver it,” Biden said.
He poked at GOP lawmakers who voted against the law but have publicly embraced investments in their home states made possible by the law.
“Republicans have repeatedly tried to repeal key parts of the Inflation Reduction Act, including the Speaker of the House now,” Biden said, accusing Republicans of “taking credit for the billions of dollars in private investments and thousands of jobs coming into their states.
“That’s OK. I ran for president, I said I’d represent all Americans,” he added. “And like I said at the State of the Union, I’ll see you at the groundbreaking.”
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- Exclusive: Federal analysis says IRA, infrastructure law could save customers billions on energy bills
The Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law could save Americans up to $38 billion on electricity costs over the remainder of the decade, the Energy Department projected in a report shared exclusively with The Hill.
The report customized the National Energy Modeling System, which the Energy Information Administration uses in its Annual Energy Outlook, to model energy costs and national emissions in a scenario where the two laws were never implemented, based on the 2022 outlook report.
The Energy Department analysis projected that the laws will save ratepayers between $27 billion and $38 billion between 2022 and 2030 compared to the scenario where neither law passed. During the same period, the department projected businesses’ commercial electricity spending will drop 13 percent and 15 percent, while electricity rates across sectors will drop between 8 percent and 9 percent.
Under the same model, net crude oil imports are projected to drop over the rest of the decade as well. The report projects that the IRA and infrastructure law will lead to a decline in crude oil imports of between 44 percent to 59 percent relative to a scenario without the laws over the rest of the decade. However, even without the two laws, the model projected net imports would fall 35 percent over the same period.
Also between now and 2030, the report projects the two laws will allow for the deployment of up to 250 gigawatts of new wind energy and up to 475 gigawatts of new solar. The analysis indicates that U.S. greenhouse gas emissions could decline up to 41 percent relative to 2005 levels by the end of the decade, compared to 27 percent for a scenario without the laws. The Biden administration has set a broader goal of cutting emissions by half over the rest of the decade.
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- Biden's climate law boosted investment in U.S. manufacturing in first year
Last year, the Inflation Reduction Act was signed into law — one piece of legislation central to "Bidenomics" the administration has touted in the lead-up to the presidential election.
The impact thus far: A Treasury Department analysis finds the law has spurred stronger business investment, a tailwind for economic growth.
- The law, and others including the Bipartisan Infrastructure Law and the CHIPS and Science Act, unlocked billions of dollars that spurred investments in manufacturing and clean energy.
What they're saying: "There is evidence that private investment has held up especially well in recent years, despite the recent increase in interest rates, which—all else equal—would tend to slow investment rates," Treasury officials Eric Van Nostrand and Laura Feiveson write.
- The IRA, along with other Biden-era legislation, "likely explains some of that strength," the officials write.
Details: The analysis finds that business fixed investment — i.e., what companies spend on new buildings, equipment, research and more — is roughly the same share of gross domestic product as it was before the pandemic recession.
- That's unusual, the authors write: After a recession, business fixed investment usually lags the overall recovery (as was the case following the 2008 recession).
- What's happening in recent years is "a better outcome than after every other recession since 1980," the officials find.
- They also note that construction of manufacturing facilities in real terms (adjusted for inflation) has more than doubled since 2021, in part reflecting new factories as a result of the law.
Of note: The Treasury analysis also found that counties where IRA-related investments have been announced tended to be those where college graduation rate, employment and wages are lower.
- "These communities are poised to reap huge benefits from new investment. New plants could bring people into the labor force who have been left behind," the officials say.
The backdrop: Administration officials have been crisscrossing the country this week to tout the law's economic impact. It comes as consumers generally remain downbeat about the economy, despite improving conditions and easing inflation.
https://www.axios.com/2023/08/16/inf...act-bidenomics