The U.S. passed a historic climate deal this year — here’s a recap of what’s in the bill
U.S. President Joe Biden holds out his pen to U.S. Senator Joe Manchin (D-WV) as Senate Majority Leader Chuck Schumer (D-NY) and U.S. House Majority Whip James Clyburn (D-SC) look on after Biden signed “The Inflation Reduction Act of 2022” into law during a ceremony in the State Dining Room of the White House in Washington, August 16, 2022.
Leah Millis | Reuters
The Biden administration this year signed a historic climate and tax deal that will funnel billions of dollars into programs designed to speed the country’s clean energy transition and battle climate change.
As the U.S. this year grappled with climate-related disasters from Hurricane Ian in Florida to the Mosquito Fire in California, the Inflation Reduction Act, which contains $369 billion in climate provisions, was a monumental development to mitigate the effects of climate change across the country.
The bill, which President Joe Biden signed into law in August, is the most aggressive climate investment ever taken by Congress and is expected to slash the country’s planet-warming carbon emissions by about 40% this decade and move the country toward a net-zero economy by 2050.
The IRA’s provisions have major implications for clean energy and manufacturing businesses, climate startups and consumers in the coming years. As 2022 comes to a close, here’s a look back at the key elements in the legislation that climate and clean energy advocates will be monitoring in 2023.
Incentives for electric vehicles
The deal offers a federal tax credit worth up to $7,500 to households that buy new electric vehicles, as well as a used EV credit worth up to $4,000 for vehicles that are at least two years old. Starting Jan. 1, people making $150,000 a year or less, or $300,000 for joint filers, are eligible for the new car credit, while people making $75,000 or less, or $150,000 for joint filers, are eligible for the used car credit.
Despite a rise in EV sales in recent years, the transportation sector is still the country’s largest source of greenhouse gas emissions, with the lack of convenient charging stations being one of the barriers to expansion. The Biden administration has set a goal of 50% electric vehicle sales by 2030.
The IRA limits EV tax credits to vehicles assembled in North America and is intended to wean the U.S. off battery materials from China, which accounts for 70% of the global supply of battery cells for the vehicles. An additional $1 billion in the deal will provide funding for zero-emissions school buses, heavy-duty trucks and public transit buses.
U.S. President Joe Biden gestures after driving a Hummer EV during a tour at the General Motors ‘Factory ZERO’ electric vehicle assembly plant in Detroit, Michigan, November 17, 2021.
Jonathan Ernst | Reuters
Stephanie Searle, a program director at the nonprofit International Council on Clean Transportation, said the combination of the IRA tax credits and state policies will bolster EV sales. The agency projects that roughly 50% or more of passenger cars, SUVs and pickups sold in 2030 will be electric. For electric trucks and buses, the number will be 40% or higher, the group said.
In the upcoming year, Searle said the agency is monitoring the Environmental Protection Agency’s plans to propose new greenhouse gas emissions standards for heavy-duty vehicles starting in the 2027 model year.
“With the IRA already promoting electric vehicles, EPA can and should be bold in setting ambitious standards for cars and trucks,” Searle said. “This is one of the Biden administration’s last chances for strong climate action within this term and they should make good use of it.”
Taking aim at methane gas emissions
Some pumpjacks operate while others stand idle in the Belridge oil field near McKittrick, California. Oil prices rose in early Asian trade on the prospect that a stalled Iran nuclear deal and Moscow’s new mobilization campaign would restrict global supplies.
Mario Tama | Getty Images
The package imposes a tax on energy producers that exceed a certain level of methane gas emissions. Polluters pay a penalty of $900 per metric ton of methane emissions emitted in 2024 that surpass federal limits, increasing to $1,500 per metric ton in 2026.
It’s the first time the federal government has imposed a fee on the emission of any greenhouse gas. Global methane emissions are the second-biggest contributor to climate change after carbon dioxide and come primarily from oil and gas extraction, landfills and wastewater and livestock farming.
Methane is a key component of natural gas and is 84 times more potent than carbon dioxide, but doesn’t last as long in the atmosphere. Scientists have contended that limiting methane is needed to avoid the worst consequences of climate change.
The Harris Cattle Ranch feedlot, located along Interstate 5, is the largest producer of beef in California and can produce 150 million pounds of beef a year as viewed on May 31, 2021, near Harris Ranch, California.
George Rose | Getty Images
Robert Kleinberg, a researcher at Columbia University’s Center on Global Energy Policy, said the methane emitted by the oil and gas industry each year would be worth about $2 billion if it was instead used to generate electricity or heat homes.
“Reducing methane emissions is the fastest way to moderate climate change. Congress recognized this in passing the IRA,” Kleinberg said. “The methane fee is a draconian tax on methane emitted by the oil and gas industry in 2024 and beyond.”
In addition to the IRA provision on methane, the Biden Interior Department this year proposed rules to curb methane leaks from drilling, which it said will generate $39.8 million a year in royalties for the U.S. and prevent billions of cubic feet of gas from being wasted through venting, flaring and leaks.
Boosting clean energy manufacturing
The bill provides $60 billion for clean energy manufacturing, including $30 billion for production tax credits to accelerate domestic manufacturing of solar panels, wind turbines, batteries and critical minerals processing, and a $10 billion investment tax credit to manufacturing facilities that are building EVs and clean energy technology.
There’s also $27 billion going toward a green bank called the Greenhouse Gas Reduction Fund, which will provide funding to deploy clean energy across the country, but particularly in overburdened communities. And the bill has a hydrogen production tax credit, which provides hydrogen producers with a credit based on the climate attributes of their production methods.
Solar panels are set up in the solar farm at the University of California, Merced, in Merced, California, August 17, 2022.
Nathan Frandino | Reuters
Emily Kent, the U.S. director of zero-carbon fuels at the Clean Air Task Force, a global climate nonprofit, said the bill’s support for low-emissions hydrogen is particularly notable since it could address sectors like heavy transportation and heavy industry, which are hard to decarbonize.
“U.S. climate policy has taken a major step forward on zero-carbon fuels in the U.S. and globally this year,” Kent said. “We look forward to seeing the impacts of these policies realized as the hydrogen tax credit, along with the hydrogen hubs program, accelerate progress toward creating a global market for zero-carbon fuels.”
The clean energy manufacturing provisions in the IRA will also have major implications for startups in the climate space and the big venture capital firms that back them. Carmichael Roberts, head of investment at Breakthrough Energy Ventures, has said the climate initiatives under the IRA will give private investors more confidence in the climate space and could even lead to the creation of up to 1,000 companies.
“Everybody wants to be part of this,” Roberts told CNBC following the passage of the bill in August. Even before the measure passed, “there was already a big groundswell around climate,” he said.
Investing in communities burdened by pollution
The legislation invests more than $60 billion to address the unequal effects of pollution and climate change on low-income communities and communities of color. The funding includes grants for zero-emissions technology and vehicles, and will help clean up Superfund sites, improve air quality monitoring capacity, and provide money to community-led initiatives through Environmental and Climate Justice block grants.
Smoke hangs over the Oakland-San Francisco Bay Bridge in San Francisco, California, U.S., on Wednesday, Sept. 9, 2020. Powerful, dry winds are sweeping across Northern California for a third day, driving up the risk of wildfires in a region thats been battered by heat waves, freak lightning storms and dangerously poor air quality from blazes.
Bloomberg | Bloomberg | Getty Images
Research published in the journal Environmental Science and Technology Letters found that communities of color are systematically exposed to higher levels of air pollution than white communities due to redlining, a federal housing discrimination practice. Black Americans are also 75% more likely than white Americans to live near hazardous waste facilities and are three times more likely to die from exposure to pollutants, according to the Clean Air Task Force.
Biden signed an executive order after taking office aimed to prioritize environmental justice and help mitigate pollution in marginalized communities. The administration established the Justice40 Initiative to deliver 40% of the benefits from federal investments in climate change and clean energy to disadvantaged communities.
More recently, the EPA in September launched an office focused on supporting and delivering grant money from the IRA to these communities.
Cutting ag emissions
The deal includes $20 billion for programs to slash emissions from the agriculture sector, which accounts for more than 10% of U.S. emissions, according to EPA estimates.
The president has pledged to reduce emissions from the agriculture industry in half by 2030. The IRA funds grants for agricultural conservation practices that directly improve soil carbon, as well as projects that help protect forests prone to wildfires.
Farmer Roger Hadley harvests corn from his fields in his John Deere combine in this aerial photograph taken over Woodburn, Indiana.
Bing Guan | Reuters
General Motors may be better known for its lineup of full-size trucks and SUVs, but a recently published patent shows the legacy automaker has at least considered something much smaller and nimbler: an electric motorcycle.
The patent, which surfaced earlier this year in a report by Visordown, outlines a lightweight, scrambler-style electric two-wheeler that has set off a fresh wave of speculation about GM’s potential interest in electric motorcycles or micromobility.
The design in the patent filing shows a slim electric motorcycle with a flat bench seat, upright handlebars, and dual-sport tires, suggesting a utility-forward ride meant for light off-road or potentially even mixed urban use (if it were homologated for street use).
The rear hub motor and what appears to be a central battery housing point to a simple, low-maintenance drivetrain, potentially aimed at the commuter or recreational rider market.
The overall look is somewhere between a moped and a small electric dirt bike, reminiscent of models like the Sur Ron Light Bee or Talaria Sting, though slightly more street-looking with less of a focus on pure dirt.
While the patent doesn’t include performance specs or firm production plans, it’s the clearest signal yet that GM is at least experimenting with the idea of higher-powered two-wheeled EVs. And there is some precedent. GM previously dipped a toe into the micromobility waters with the Ariv electric bicycle project, and more recently partnered with Recon Power Bikes to release a Hummer-branded fat tire e-bike.
Both efforts showed that GM sees value in offering electric alternatives beyond the traditional four-wheel format, even if the Ariv program quietly ended after a short run.
Whether this patent leads to a full-fledged GM electric motorcycle remains to be seen. It’s entirely possible the design is a concept or technology demo with no intention of hitting the market. But there are other possibilities too. GM could develop a motorcycle under one of its existing sub-brands, create a new division specifically for electric powersports, or partner with an existing two-wheeler manufacturer to license or co-develop the platform.
The timing wouldn’t be far-fetched. Despite bumpy roads in the larger flagship electric motorcycle market, lightweight electric motorcycles are booming, with companies like Ryvid targeting urban riders looking for clean, compact alternatives to traditional gasoline-powered bikes.
At the same time, a growing number of younger consumers are bypassing car ownership entirely, instead looking toward e-bikes, scooters, and low-speed electric motorcycles for daily transport. A small, stylish, and affordable GM electric motorcycle could hit that sweet spot.
Of course, turning a patent drawing into a real-world vehicle is a big leap, and GM’s own e-bike history is a reminder that two-wheeled projects can be short-lived. Still, it’s hard to ignore the symbolism of this move: even one of America’s largest automakers is exploring what personal electric transportation looks like when you cut the vehicle in half. GM might not be ready to ditch its trucks, but it clearly hasn’t ruled out hopping on a bike.
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The electric restomod experts at Lunaz have turned their talents towards the classic Rolls-Royce Phantom V limousine – and the result is exactly the kind of smooth, quiet, and luxurious ride RR’s founders would have built.
Rolls-Royce’ founders dedicated their engineering talents to developing cars that were smooth, quiet, and adequately powerful – and they spared no expense. The company Charles Rolls and Henry Royce founded would eventually go on to develop some of the most powerful and celebrated combustion engines of the twentieth century … but the car they wanted to build? It was electric.
“The electric car is perfectly noiseless and clean,” Charles Rolls told The Motor-Car Journal, all the way back in April of 1900. (!) “There is no smell or vibration, and they should become very useful when fixed charging stations can be arranged. But for now, I do not anticipate that they will be very serviceable – at least for many years to come.”
Well, 125 years seems like “many” to – and the talented craftspeople and engineers at Lunaz seem to agree. Meet the Lunaz Rolls-Royce Phantom V limousine.
It’s glorious
Lunaz says it’s true to Rolls’ vision “down to the smallest, most indulgent detail.” To that end, the company re-trims the modern heated and ventilated seats in fine leathers, hand-cut and stitched to the buyers’ specifications. In the rear, the center console can be ordered with a built-in cigar humidor, a cocktail bar, or some other custom-spec, lockable storage lined in suede and polished walnut (translation: guns and drugs, probably).
When reimagining the Rolls-Royce Phantom V, (we) started by understanding the essence of its original design. Every component and dynamic was scrutinized to identify where thoughtful innovation could truly elevate the experience. The result is a harmonious blend of modern advancements and original mastery, unlocking new levels of performance, reliability and refinement while honoring Rolls-Royce’ classic soul.
Like the classic Bentley S2 Continental the company revealed in 2023, the big electric Roller is equipped with an 80 kWh battery pack sending electrons to a proprietary Lunaz drivetrain featuring 400 hp worth of electric motors delivering a silky-smooth 530 lb-ft of torque, good for a 0-100 km/h (62 mph) swoosh in about seven seconds. Of course, why you’d ever ask your driver to perform such plebian stunts is simply beyond me.
The transformation and restoration took more than 5,500 man-hours to complete, and involve more than 11,000 new or reconditioned components at a cost of more than £1 million (about $1.35 million US). If you place your order today, you should get yours in 18-24 months.
Lunaz Rolls-Royce gallery
SOURCE | IMAGES: Lunaz.
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