Unlocking the IRA: Six Key Opportunities for State Policymakers

How states can capitalize on historic climate and clean energy funds.

In 2022, President Biden and Congress delivered the Inflation Reduction Act (IRA), the largest climate and clean energy investment in US history. Now, as billions of dollars in federal funding become available, it's time for states to take full advantage of this historic opportunity.

IRA programs provide funding directly to state governments to promote home energy efficiency, fund decarbonization projects, create equitable green financial institutions, and more. But to take full advantage of these federal funds, states must be ready to apply for funds and to use them well. Strategic use of IRA dollars and well-designed state-level programs have the potential to create thousands of jobs, lower energy costs for Americans, drive investment into disadvantaged communities, and put states on the path to meeting their own climate and economic development goals.

To help state officials take full advantage of opportunities in the IRA, Evergreen Collaborative and RMI produced a series of memos that contain:

Guidance on applying for specific IRA programs
Program implementation recommendations to ensure efficient, effective and equitable implementation
Timelines and deadlines to access funds
Pitfalls to avoid
Other important considerations to maximize impact of federal funds

Click below to download the fact sheet for each program.

Breaking Down the Inflation Reduction Act

Discover our sortable and filterable list where we break down the Inflation Reduction Act.

Greenhouse Gas Reduction Fund

$27 billion to states, nonprofit financial institutions, and Tribes designed to both support state governments in deploying zero emissions technologies and to provide low-cost financing for climate and clean energy projects, especially in disadvantaged communities.

Climate Pollution Reduction Grants

$5 billion in direct grants to states, local governments, air pollution control agencies, and Tribes to plan for and implement comprehensive policies that will reduce climate pollution.

Environmental and Climate Justice Block Grants

$3 billion in grants and technical assistance to community-based organizations to execute climate and environmental justice projects of their design, including efforts to reduce air pollution, improve pollution monitoring, support community resilience, and build capacity to engage with the state and federal decision-making process.

Home Efficiency Rebate Program

$4.3 billion for states to design programs that will incentivize whole-home retrofits that promote energy savings through improved efficiency and electrification.

Home Electrification Rebate Program

$4.5 for states to design programs that will help low- and moderate-income households electrify their living units and save money on energy bills.

Electricity Incentives in The Inflation Reduction Act

This brief examines how a nuanced understanding of the programs, investments, and incentives in the IRA can inform the work of public utility commissions and lead to significant electric bill savings for Americans.