Greg Schivley

The Inflation Reduction Act (IRA) is regarded as the most prominent piece of federal climate legislation in the U.S. thus far. This paper investigates potential impacts of IRA on the power sector, which is the focus of many core IRA provisions. We summarize a multi-model comparison of IRA to identify robust findings and variation in power sector investments, emissions, and costs across 11 models of the U.S. energy system and electricity sector. Our results project that IRA incentives accelerate the deployment of low-emitting capacity, increasing average annual additions by up to 3.2 times current levels through 2035. CO2 emissions reductions from electricity generation across models range from 47%–83% below 2005 in 2030 (68% average) and 66%–87% in 2035 (78% average). Our higher clean electricity deployment and lower emissions under IRA, compared with earlier U.S. modeling, change the baseline for future policymaking and analysis. IRA helps to bring projected U.S. power sector and economy-wide emissions closer to near-term climate targets; however, no models indicate that these targets will be met with IRA alone, which suggests that additional policies, incentives, and private sector actions are needed.  

The REPEAT Project’s revised analysis examines the climate and energy impacts of legislation passed by the 117th Congress, focusing on the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act of 2021. Updated with the latest data from 2022, the analysis includes enhanced information on methane emissions in the oil, gas, agriculture, and forestry sectors. It presents three ‘Current Policies’ scenarios—’Conservative’, ‘Mid-range’, and ‘Optimistic’—to reflect uncertainties in law effectiveness and supply chain constraints. Additionally, it compares two benchmark scenarios: a ‘Frozen Policies’ scenario based on early 2021 policies, and a ‘Net-Zero Pathway’ scenario aligning with President Biden’s climate goals. The report covers greenhouse gas emissions, clean energy, electric vehicle deployment, fossil fuel use, and their impacts on energy costs, investment, employment, air pollution, and public health. The findings, which are approximate due to uncertainties, are updated regularly and have not been peer-reviewed.

The REPEAT Project has finalized its analysis of the climate and energy impacts of key legislation from the 117th Congress, focusing on the Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act of 2021 (IIJA). This report, updated with the latest data from 2021, includes enhanced evaluations of methane emissions in the oil and gas sector and opportunities for emission reduction in agriculture and forestry. The analysis introduces three ‘Current Policies’ scenarios—’Conservative’, ‘Mid-range’, and ‘Optimistic’—to account for uncertainties in IRA’s effectiveness and potential supply chain constraints. Additionally, it compares a ‘Frozen Policies’ scenario, reflecting laws as of early 2021, and a ‘Net-Zero Pathway’ scenario, aligning with President Biden’s goals to significantly reduce U.S. greenhouse gas emissions by 2030 and achieve net-zero by 2050. This brief report previews the final findings on these laws’ impact on the U.S.’s greenhouse gas emissions trajectory.

This report assesses the role of electricity transmission in enabling the full emissions reduction potential of the Inflation Reduction Act (IRA). Previously, REPEAT Project estimated that IRA could cut U.S. greenhouse gas emissions by roughly one billion tons per year in 2030 and reduce cumulative greenhouse gas emissions by 6.3 billion tons of CO2-equivalent over the decade (2023-2032).1 That outcome depends on more than doubling the historical pace of electricity transmission expansion over the last decade in order to interconnect new renewable resources at sufficient pace and meet growing demand from electric vehicles, heat pumps, and other electrification. While our modeling finds this outcome makes economic sense, current transmission planning, siting, permitting and cost allocation practices can all potentially impede the real-world pace of transmission expansion. We thus model the impact of constrained growth in U.S. electricity transmission on emissions outcomes and the pace of renewable electricity expansion under IRA.