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Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions (2024)

Chapter: Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities

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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
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APPENDIX J

Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities

Table J-1 displays the wide array of provisions in the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) directing funds, opportunities, and requirements toward subnational entities, and capacity and resource dimensions that funding agencies, applicants, and recipients will need to consider.

Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×

TABLE J-1 Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA) Provisions, Amount of Funding Available, Federal Agency Responsible for Implementation, Opportunities or Requirements for Subnational Entities, and Capacity and Resource Considerations

Section(s) Name Amount ($ billion) Federal Agency Opportunities/Requirements for Subnational Entities Capacity and Resource Considerations
Infrastructure Investment and Jobs Act
40101(c), 40103(b), 40107 Grid Resilience and Innovation Partnerships 10.500 Department of Energy (DOE) Subnational and tribal agencies are eligible for $3 billion in Smart Grid grants or $5 billion in grid innovation financial assistance (DOE-GD 2023b). Recipients must compete for funds.
40101(d) Preventing Outages and Enhancing the Resilience of the Electric Grid 0.459 DOE State and tribal governments are eligible for grants to undertake strategic planning, community engagement, and investments to improve grid resilience to all hazards (DOE-GD 2022).
40104, 40108, 40109 U.S. State Energy Program 0.500 DOE State and Territory Energy Offices receive formula funding for clean energy, energy security, demand response, and collaborative transmission siting planning and activities (DOE-SCEP 2023f). Allocated on a formula basis to all states and territories.
40314 Regional Clean Hydrogen Hubs 8.000 DOE Subnational and tribal governments can be potential partners in the hubs, which will include hydrogen producers, potential consumers, connective infrastructure, and communities (DOE-OCED 2023). Recipients must compete for funds.
40431 Utility Electric Vehicle (EV) Promotion Measures 0.000 Federal Energy Regulatory Commission (FERC) Each state regulatory authority and each nonregulated utility is required to consider measures to promote greater transportation electrification by amending rates (DOE-EERE 2023). Entities with existing EV rates are exempt. Legislation does not provide any funding to states.
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
40502 Energy Efficiency Revolving Loan Fund Capitalization 0.250 DOE State and Territory Energy Offices can receive grants to establish a revolving loan fund for residential and commercial energy efficiency loans and audits (DOE 2022a). Distributed to all states based on a formula allocation, with additional funding to “priority states” with high per-capita energy consumption or carbon dioxide emissions.
40503 Energy Auditor Training Grant Program 0.040 DOE State and Territory Energy Offices can receive grants to support energy auditor training and education (DOE-SCEP 2023b). Recipients must compete for funds.
40511 Resilient and Efficient Codes Implementation 0.225 DOE State Energy Offices, Tribal Energy Offices, and partnerships among local code, construction, and energy efficiency entities are eligible for grants supporting building energy codes updates (DOE-EERE 2022). Recipients must compete for funds.
40541 Energy Improvements at Public School Facilities 0.500 DOE Local educational agencies can access grants to make clean energy improvements in K–12 public schools, with an emphasis on the highest-needs districts (DOE-SCEP 2023c). Recipients must compete for funds.
40551 Weatherization Assistance Program 3.500 DOE State weatherization agencies received expanded formula funding to conduct low-income home energy efficiency and weatherization programs (DOE 2022b). Up to 15% of a grant may be used for administrative purposes.
40552 Energy Efficiency and Conservation Block Grant Program 0.550 DOE States and localities receive formula funding for energy efficiency, renewable energy, clean transportation, and financing projects and planning (DOE-SCEP 2023a). Portion of funds are reserved for competitive program for lesser-populated localities and tribes.
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
Section(s) Name Amount ($ billion) Federal Agency Opportunities/Requirements for Subnational Entities Capacity and Resource Considerations
Division J National Electric Vehicle Infrastructure Formula Program 5.000 Department of Transportation (DOT) States, Washington, DC, and Puerto Rico can receive assistance to strategically deploy EV charging infrastructure to establish an interconnected network (DOT 2022). Funds available as both formula and discretionary funds.
Inflation Reduction Act
13101, 13102, 13103, 13104, 13105, 13204, 13403, 13404, 13501, 13701, 13702, 13702(h), 13704 Various tax credits DOT Tax-exempt organizations, such as state and local governments, are eligible for direct pay of tax incentives (White House 2022).
22001 Electric Loans for Renewable Energy 1.000 Department of Agriculture (USDA) Subnational and tribal governments are eligible to receive loans and loan guarantees for the construction of electric distribution, transmission, and generation facilities (White House 2022). Up to 50% non-federal cost share required but may be waived by Secretary.
22007 Increasing Land Access Program 0.250 USDA Local and tribal governments, community-development financial institutions, and nonprofit education partners can receive grants for projects that improve land access for underserved farmers, ranchers, and forest landowners (White House 2022).
23003(a)(2) Urban and Community Forestry Assistance Program 1.500 USDA Subnational and tribal agencies can receive grants for tree-planting activities (White House 2022). Up to 50% non-federal cost share required but may be waived by Secretary.
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
40001 Investing in Coastal Communities and Climate Resilience 2.600 Department of Commerce Coastal states, tribal governments, and local governments can receive financial or technical assistance to support coastal resilience (White House 2022).
40007(a)(1) Fueling Aviation’s Sustainable Transition Through Sustainable Aviation Fuels 0.245 Federal Aviation Administration (FAA) Subnational and tribal governments can receive funding for projects relating to sustainable aviation fuel (White House 2022). Between 10%–25% non-federal cost share required.
40007(a)(2) Fueling Aviation’s Sustainable Transition—Technology 0.047 FAA Subnational and tribal governments can receive funding for projects relating to low-emission aviation technologies (White House 2022). Between 10%–25% non-federal cost share required.
50121, 50122 Home Energy Rebates—Home Efficiency, Electrification, and Appliance Rebates 8.800 DOE State Energy Offices can receive grants to develop whole-house and/or high-efficiency electric home rebates. Tribes are eligible for the electric home rebate program (DOE-SCEP 2023d). Non-federal cost share of 20%–50% required depending on household income level and/or price of appliance. 20% of Electric Home Rebate Program allocations can be used for planning, administration, or technical assistance.
50123 State-Based Home Efficiency Contractor Training Grants 0.200 DOE States can receive financial assistance to develop and implement training programs for contractors involved in the installation of home energy efficiency and electrification improvements (DOE-SCEP 2023e).
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
Section(s) Name Amount ($ billion) Federal Agency Opportunities/Requirements for Subnational Entities Capacity and Resource Considerations
50131 Assistance for Latest and Zero Building Energy Code Adoption 1.000 DOE State and local governments with building code adoption authority can receive grants to adopt updated building energy codes (White House 2022).
50141 Energy Loan Programs Office 3.600 DOE Subnational and tribal governments, school districts, housing authorities, and nonprofits are among the eligible recipients to receive loan guarantees for Innovative Clean Energy technologies, including fossil energy, nuclear energy, critical minerals processing, manufacturing, and recycling (White House 2022).
50144 Energy Infrastructure Reinvestment Financing 5.000 DOE Subnational governments are anticipated to be among the eligible recipients of loan guarantees for projects that retool, repower, repurpose, or replace energy infrastructure (White House 2022).
50145 Tribal Energy Loan Guarantee Program 0.075 DOE Tribal governments and economic development organizations can receive direct loans or partial loan guarantees for a broad range of energy resources, products, and services (White House 2022).
50152 Siting of Interstate Electricity Transmission Lines 0.760 DOE Transmission siting authorities or other state, local, or tribal government entities are eligible for grants to facilitate siting of transmission projects and economic development activities in impacted communities (DOE-GD 2023a). At least 50% non-federal cost share required for grants to siting authorities.
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
50241 Climate Change Technical Assistance for Territories 0.015 Department of the Interior (DOI) Territorial governments can receive technical assistance for climate planning, mitigation, adaptation, and resilience (White House 2022). Funds will support technical assistance, but not direct financial assistance.
60101 Clean Heavy-Duty Vehicles 1.000 Environmental Protection Agency (EPA) Subnational and tribal governments and school transportation associations can receive grants and rebates to offset the incremental costs of zero-emission vehicles, infrastructure, workforce development and training, and planning and technical assistance (White House 2022). Recipients must compete for funds.
60103 Greenhouse Gas Reduction Fund 27.000 EPA States, municipalities, and tribal governments are directly eligible for $7 billion program to provide financial and technical assistance to low-income and disadvantaged communities to deploy zero-emission technologies. Green banks, community development financial institutions, credit unions, housing agencies, and others are eligible for the $20 billion General and Low-Income Assistance Competition (EPA 2023). Recipients must compete for funds.
60104 Diesel Emissions Reductions 0.060 EPA Subnational and tribal agencies and port authorities can receive grants, rebates, and loans to reduce diesel emissions resulting from goods movement facilities and services in low-income and disadvantaged communities (White House 2022).
60105 Funding to Address Air Pollution 0.236 EPA Subnational and tribal agencies can receive grants and technical assistance across a variety of topic areas: Clean Air Act planning and implementation, mobile source, fenceline air monitoring, multipollutant monitoring, air quality sensors, methane monitoring (White House 2022).
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
Section(s) Name Amount ($ billion) Federal Agency Opportunities/Requirements for Subnational Entities Capacity and Resource Considerations
60106 Funding to Address Air Pollution at Schools 0.050 EPA Subnational and tribal governments can receive grants and technical assistance to monitor and reduce pollution and greenhouse gases (GHGs) in schools in low-income and disadvantaged communities (White House 2022). Recipients must compete for funds.
60109 Implementation of the American Innovation and Manufacturing Act 0.039 EPA Subnational governments can receive grants to phase down the production and consumption of hydrofluorocarbons (HFCs) (White House 2022). Recipients must compete for funds.
60113 Methane Emissions Reduction Program 1.550 EPA Subnational and tribal governments are eligible to receive grants, rebates, or contracts to reduce methane or other GHGs from petroleum and natural gas systems (White House 2022).
60114 Climate Pollution Reduction Grants 5.000 EPA Subnational and tribal governments are eligible to receive grants to develop and implement plans for reducing GHG air pollution (White House 2022). Initial $250 million for planning grants and remaining $4.75 billion for competitive implementation grants.
60201 Environmental and Climate Justice Block Grants 3.000 EPA Tribal and local governments can partner with community-based nonprofits to receive grants and technical assistance to reduce indoor and outdoor air pollution (White House 2022). Most recipients must compete for grants.
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
60501 Neighborhood Access and Equity Grant Program 3.205 DOT Subnational and tribal governments and special-purpose districts for projects that improve walkability and transportation access (White House 2022). Recipients must compete for funds. Grants can be used for planning and capacity-building in disadvantaged communities. Non-federal cost of 20% required expect in disadvantaged communities.
60506 Low-Carbon Transportation Materials Program 2.000 DOT Subnational and tribal governments and special-purpose districts can receive reimbursements or incentives for the use of low-embodied carbon construction materials and products in federally funded highway projects (White House 2022).
80001 Tribal Climate Resilience 0.235 DOI Tribes can receive financial assistance to support climate resilience planning, habitat restoration and adaptation, community-directed relocation, fish hatchery operations, and other activities (White House 2022).
80002 Native Hawaiian Climate Resilience 0.025 DOI State, local, and Native Hawaiian Community representatives can receive financial assistance to develop and implement a new Native Hawaii Climate Resilience Program (White House 2022).
80003 Tribal Electrification Program 0.150 DOI Tribes can receive financial and technical assistance to increase the number of homes with zero-emission electricity (White House 2022). May also come in the form of direct federal spending.
Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×

REFERENCES

DOE (Department of Energy). 2022a. “Energy Efficiency Revolving Loan Fund Capitalization Grant Program (EE RLF) IIJA ALRD.” Administrative and Legal Requirements Document (ALDR). https://www.energy.gov/sites/default/files/2022-11/EE-RLF-IIJA-Administrative-and-Legal-Requirements-Document.pdf.

DOE. 2022b. “Weatherization Assistance Program for Low-Income Persons: Application Instructions.” https://www.energy.gov/sites/default/files/2022-05/bil-application-instructions_v2.pdf.

DOE-EERE (U.S. Department of Energy Office of Energy Efficiency and Renewable Energy). 2022. “Resilient and Efficient Codes Implementation: Infrastructure Investment and Jobs Act.” https://www.energycodes.gov/sites/default/files/2022-07/NECC2022_2_DOE_IIJA_Presentation.pdf.

DOE-EERE. 2023. “Bipartisan Infrastructure Law (Infrastructure Investment and Jobs Act of 2021).” https://afdc.energy.gov/laws/infrastructure-investment-jobs-act.

DOE-GD (U.S. Department of Energy Grid Deployment Office). 2022. “DOE’s Implementation Plan for IIJA Section 40101(D)—Formula Grants to States and Indian Tribes for Preventing Outages and Enhancing the Resilience of the Electric Grid.” Notice of Intent (No. DE-FOA-0002764) to Issue Formula Grant Administrative and Legal Requirements (ALRD) Announcement No. DE-FOA-0002736. https://netl.doe.gov/sites/default/files/2022-05/IIJA%2040101d%20-%20Notice%20of%20Intent.pdf.

DOE-GD. 2023a. “Frequently Asked Questions on the Transmission Siting and Economic Development Grants Program.” https://www.energy.gov/gdo/frequently-asked-questions-transmission-siting-and-economic-development-grantsprogram.

DOE-GD. 2023b. “Grid Resilience and Innovation Partnerships (GRIP) Program.” https://www.energy.gov/gdo/gridr-esilience-and-innovation-partnerships-grip-program.

DOE-OCED (Department of Energy Office of Clean Energy Demonstrations). 2023. “OCED Funding Opportunity Exchange.” https://oced-exchange.energy.gov/Default.aspx#FoaId4e674498-618c-4f1a-9013-1a1ce56e5bd3.

DOE-SCEP (Department of Energy Office of State and Community Energy Programs). 2023a. “EECBG Program Formula Grant Application Hub.” https://www.energy.gov/scep/eecbg-program-formula-grant-application-hub.

DOE-SCEP. 2023b. “Energy Auditor Training Grant Program.” https://www.energy.gov/scep/energy-auditor-training-grant-program.

DOE-SCEP. 2023c. “Grants for Energy Improvements at Public School Facilities.” https://www.energy.gov/scep/grants-energy-improvements-public-school-facilities.

DOE-SCEP. 2023d. “Home Energy Rebate Programs Early Administrative Funds Administrative and Legal Requirements Document (ALRD).” https://www.energy.gov/sites/default/files/2023-03/Home_Energy_Rebates_ALRD.pdf.

DOE-SCEP. 2023e. “State-Based Home Energy Efficiency Contractor Training Grants.” https://www.energy.gov/scep/state-based-home-energy-efficiency-contractor-training-grants.

DOE-SCEP. 2023f. “State Energy Program Guidance.” https://www.energy.gov/scep/state-energy-program-guidance.

DOT (Department of Transportation). 2022. Bipartisan Infrastructure Law (BIL): Overview of Highway Provisions. https://www.fhwa.dot.gov/bipartisan-infrastructure-law/docs/bil_overview_20211122.pdf.

EPA (Environmental Protection Agency). 2023. “EPA Announces Initial Program Design of Greenhouse Gas Reduction Fund.” https://www.epa.gov/newsreleases/epa-announces-initial-program-design-greenhouse-gas-reduction-fund.

White House. 2022. Inflation Reduction Act Guidebook. https://www.whitehouse.gov/wp-content/uploads/2022/12/Inflation-Reduction-Act-Guidebook.pdf.

Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Suggested Citation:"Appendix J: Select Infrastructure Investment and Jobs Act and Inflation Reduction Act Provisions Implicating Subnational Entities." National Academies of Sciences, Engineering, and Medicine. 2024. Accelerating Decarbonization in the United States: Technology, Policy, and Societal Dimensions. Washington, DC: The National Academies Press. doi: 10.17226/25931.
×
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Addressing climate change is essential and possible, and it offers a host of benefits - from better public health to new economic opportunities. The United States has a historic opportunity to lead the way in decarbonization by transforming its current energy system to one with net-zero emissions of carbon dioxide. Recent legislation has set the nation on the path to reach its goal of net zero by 2050 in order to avoid the worst consequences of climate change. However, even if implemented as designed, current policy will get the United States only part of the way to its net-zero goal.

Accelerating Decarbonization in the United States provides a comprehensive set of actionable recommendations to help policymakers achieve a just and equitable energy transition over the next decade and beyond, including policy, technology, and societal dimensions. This report addresses federal and subnational policy needs to overcome implementation barriers and gaps with a focus on energy justice, workforce development, public health, and public engagement. The report also presents a suite of recommendations for the electricity, transportation, built environment, industrial, fossil fuels, land use, and finance sectors.

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