Cspan. Org. Next a look at the Inflation Reduction Act. Good morning, everyone. Good morning. I have beginning to doubt the quality of our coffee. Im the Vice President of Development Program and helped lead program. On behalf of myself and our interim president lew, warm welcome to all of you in the room and those of you online as well for this important conversation. Oneyear anniversary of the Inflation Reduction Act and the progress on the climate agenda hosted by the brookings initiative on Climate Research in action. Its been just over a year since President Biden signed into law the Inflation Reduction Act or ira as its known. It is the most ambitious investment in Clean Energy Legislation in u. S. History. It includes more than 20 new and modified tax incentives and tens of billions of dollars of loan programs. The ira with Energy Technology investment and deployment and accelerate then transition by unlocking transformative change, Energy Systems but also believers through energy cost and goodpaying jobs particularly for communities that are underserved or overburdened by pollution. Ira inon combination with law would allow u. S. To cut emissions 40 by 2005 levels by 2030 andev to the country to achieve by 2050 with longterm Strategy Plan unveiled two years ago. We all know that success is not predetermined particularly plans are ambitious as the ira and the oneyear anniversary, how is it working across the country. What are practical on the ground challenges and how do we overcome them to maximize the potential of the ira and importantly on whether the benefits are get to go the people and the communities that need them the most. These are some of the questions that are brookings climate experts have been working on among others. I believe that the ira has the potential to be beneficial not just for the u. S. But for the world u not withstanding concern from countries uncolluding diversion of foreign investment, provisions and implications for the wt of courses free trade principles. Success. Net zero transition in the u. S. Will make significant contribution to the shared gel of cutting global emissions to acceptable levels and contain global warming. The ira, bolster u. S. Spending and commitment to the global climateagenda and climate expere the forefront of the Global Policy have been accentive to help other countries reacting to the ir affects including europe and canada. We will hear on the impact of ira in the u. S. And also the global implication. We could not have been more honor today have john podesta open event and founder of the american progress, currently serves as Senior Adviser to President Biden for Clean Energy Innovation and implementation. In this you will oversea implementation of the ira and shares National Private task force. Hes a devoted Public Servant including coordinator of the Climate Policy and initiatives in the Obama Administration and as white house chief of staff clintone administration. So, john, thank you for your continued service andha dedicatn to the nation. We are honored you finding time in busy schedule to be with us today. The agenda for the remaining of the day, half day is we will hear from john and remarks and then followed by chat with david victor who is one of our climate experts and nonresident senior fellow in Foreign Policy and global program. After that john will depart to attend the business of our nation and begin the panel discussions. So thean first panel will focusn the domestic implications of the ira for the u. S. Economy, we will then take a tenminute coffee break for you to reach out and we will review the second panel on the global implication of thee ira includig its impact on trade, markets and and the climate emission. We are, indeed we are indebted to Lisa Friedman who will moderate panel. Reporter on climate desk focusing on climate environmental policy in washington. She has covered several International Climate talks and climate related stories from the bottom of chinese coal mine to the top of the himalayan mountains. Without fur due, please join me to welcome john to the podium. [applause] well, thank you, and its great to be with all of you. Its great to be at brookings, my second favorite think tank in washington, d. C. We are gathering, of course, at the end of summer that really was defined by the Climate Crisis. Re its only october and this year is already set a record for the number of climate disasters costing over a billion dollars from the devastating fires in maui to hurricane delia and hurricane lee to rare Tropical Storm hillary in california, the catastrophic flooding in vermont and new york, the 31 Straight Days in phoenix that were over 110degrees fahrenheit and thats just in the United States. Usi could spin around the world and repeat and virtually every continent. Over the past few months 98 of the people on the planet experience higher than normal temperatures. It was the hottest summer on record, july 4th perhaps honor of americas birthday was the hottest day ever recorded. But it may well be one of the coolers summers that we all experienced for the rest of our lives. The Climate Crisis is already here and we know what we need to do to create a livable future for ourselves and our children as the itcc, the un body of climate Scientists Say in the 2018 report on 1. 5degree celsius when they analyzed what was the difference between a world that was where global average temperatures were raised by 2degrees which is what the world was trying to manage towards in paris and beyond and what was the difference between that and 1. 3degree world and refocus the entire conversation on the difference in damage to the Natural World that would result from overshooting and andou hitting that mark. But they said in that report that what we need to do to stabilize the atmosphere was to get to aiz world by mid century where we were net zero, where we were taking as much as carbon out of the atmosphere as we were puttingbo into it and that would require a transformation of the Global Economy on the size and scale thats never occurred in human history. Let me repeat the quote from the report. A transformation of Global Economy on the size and scale that has never occurred in human history. O that kind of transformation i would contend is not achievable by the market alone. We need public and private investment. Its why President Biden passed his investing in america agenda, cathe bipartisan infrastructure law which makes the biggest investment in our nations infrastructure and spurs innovation in the energy sector, the chip and science act which lays innovation and, okay, the Inflation Reduction Act. The biggest ever investment in clean energy and Climate Change not just in the history of our country but in the history of the world. This legislation is core, is government enableded but its privatesector led. Unlike past legislative efforts the Inflation Reduction Act invests in every omitting sector, power, transportation, buildings, industry, agriculture and forestry and the president policy certainty for clean energy in this country. We have already seen a tremendous response to the passage of the bill from the private sector over the past year alone just since the bill passed and was signed into law last august a year ago august. 115 billion in Clean Energy Manufacturing investments i will add 3 billion to that a new battery factory in kokomo, indiana. What are 50 billion in new Clean Energy Manufacturing investments from ges new union made wind Assembly Line that was previously in decline building wind assemblies will create see hundred construction jobs and 1000 permitting jobs. On top of that utilities have announced more than 120 billion for clean energy. This investment is adding up over the last year. 4 of total investment structures durable consumer goods was in clean energy. More than doubled the share four years ago. Lets fostering economic growth. The first half of 2023 manufacturing construction contributed the most to real gdp growth of any six months on record going back to 1958. These are real results for the economy for planning and for the american people. They department of energy is found the Inflation Reduction Act and bipartisan infrastructure law put us on a path to achieve President Bidens goal of cutting Carbon Pollution by 50 52 by the end of the decade. They estimate because of those laws there will be 80 clean power in 2030 and will exceed President Bidens goal new vehicle sales electric in the same year. This legislation does not just benefit the United States. The Inflation Reduction Act is expected to drive down the cost of clean Energy Technology by as much as 25 globally. More than that in some of the more advanced technologies. Helping speed deployment make every dollar go further across the globe. Every ton of Carbon Pollution reduced here in america because of the Inflation Reduction Act will up to 2. 9 tons of Carbon Pollution outside the United States. Thats a complete change from where we were just over a year ago. As we enter hereto to maximize the inflation reduction ops injustice we need to result a few key challenges and that is what the conversation today is all about. As to the first challenge is permitting. In order to reach divide goal of one 100 Clean Electricity by 2035 we need to deploy highperformance transmission lines at twice the current pace. We need to build out 60 additional capacity to achieve that President Biden has elevated the permitting issue to issuesto the highest levels of government for the first time. I have been around a few times in washington i have never seen this happen before we meet regularly at the cabinet level to track nearly two highimpact projects about 56 gigawatts of trance capacity for renewable energy. Our administration is using every tool at our expose will to improve the federal permitting process. We are investing 1 billion the Inflation Reduction Act to increase capacity at key federal permitting agencies. To add personnel and Information Technology to move this process forward. We finalize new rule at the federal Regulatory Commission that streamlines interconnection process for transmission providers. But even as we work to resolve these permitting challenges we need to also Pay Attention to the fact we need more raw inputs for clean energy and strong sustainable supply chain. Here in the u. S. And across the globe. We are in a completely different position then we were when President Biden took office. Over the course of this administration and the private sector has announced more than 135 billion for the u. S. At battery and ev supply chain including what i mentioned including energy 5. 6 billion battery in arizona. There is a battery belt being built from north georgia all the way to michigan. Companies announced nearly 13 billion in Solar Manufacturing investments including 2. 5 billion in georgia twofold solar supply chain in the United States. It is true china dominates the supply chain for many upstream clean energy technologies. We have been seeing them for decades finding jobs in factories go overseas we are rewriting the playbook and we have more ground to cover. As the majority of the lithium cobalt and graphite supplies completely outpace the u. S. And our allies on the protection of batteries and its components. On solar china controls 90 of modular with Chinese Company control about 90 of the modules cell production and nearly all manufacturing. It is why President Biden is investing in america agenda targets every stage of the supply chain for critical clean energy technologies. Its why we are working with our allies around the world from the eu to south korea to secure reliable supplies of Critical Minerals. It is why we need sustainable secure resilient Global Supply chain for clean energy to break our collective reliance on china for production of particular those upstream technologies. As we built up these supply chains bringing new industries to our country we encounter a third challenge that is workforce development. External groups estimate the Inflation Reduction Act has already created over 570,000 Clean Energy Jobs just in the past year alone and could create more than 1. 5 million jobs over the next decade. President biden Vice President harris went these jobs be good paying jobs you can support a family on that offer a chance to join a union. Jobs that attract and support what looks like american jobs america jobsthat can lead to enr in clean energy. It is why the Inflation Reduction Act in its structure offers up to five times the value of Certain Energy tax credits for companies that pay their workers a prevailing wage and use registered apprenticed not projects that is a game changer in the way we are bringing people into the workforce. In august, treasury proposed role in this provision that would also provide incentives for taxpayers to meet these requirements by using project labor agreements between developers and unions. And in september the white house launched the american Climate CourtWorkforce Training Service initiative to help young people gain the skills they need to launch good paying careers in clean energy and Climate Resilience free to attack the problem directly by giving back to their communities. Its first year of the Climate Court will put more than 20000 young people to work prioritizing workers from communities that have historically been left behind including Energy Communities that have powered our nation for literally centuries. New data shows women account for more than half of all Clean Energy Jobs more than the 75 the jobs created by the Inflation Reduction Act will not require a Fouryear College degree. We are focused on inspiring that next generation to build a Clean Energy Future and knocking down the barriers that stand in the way. We have got plenty of room to grow. Globally we are not yet on track to reach the annual install Clean Energy Capacity that we are going to need as a globe to achieve net zero by 2050. We especially need more capacity on wind, heat pumps, and Hydrogen Electrolyzers for each technology at north americas expected to contribute less than 50 of production particularly if they dont change our project tree. But make no mistake there is plenty of room for both developed and developing economies to take advantage of the boom and clean energy. To tackle the Climate Crisis to boost our energy security, to build a thriving Clean Energy Economy we have to seize this opportunity to lead on industries of the future. We have to create the Virtuous Cycle of innovation thats going to drive down cost, it deploy its scale, go faster every year. To do that we need experts to provide more Research Data and best practices on emerging technologies we need a government in the private sector to Work Together. It is a big task. Our administration i believe is up to the challenge we all must be if we are going to build a safe sustainable and secure future for ourselves and for the planet. With that i want to thank you all for listening to me im going to invite david up will have a little bit of a conversation here. [applause] i think is so much funded 35 you are managing by ute herd cats as you move a lot of cats. You quoted twice the need for the transportation going to ask about the industrial side of this. What should we be focusing on as a program that really makes the biggest difference . What are the keystones . That is the nearterm programs that are driving the mission reduction down than those permitting technology we are going to to move forward toward that net zero world we are talking about. In the nearterm i think he go over the emissions are which is clean energy and transportation. Transformation the incentives and the Inflation Reduction Act with other efforts by the administration including epa to ensure we are driving emissions down and power sector and transportation sector are really, i think, as i said leading to this boom in investment and deployment across the country. Theres been a lot of commentary particularly on the manufacturing side how much this has been concentrated in red states and blue states, make no mistake its happening all over the country. You see in nevada and california and georgia to michigan but everywhere there is investment happening whether that is an deployment of clean energy in the buildup is manufacturing renaissance as well as the effort to really drive that investment toward places that have borne the brunt of the pollution Industrial Power sectors. That is happening. It is going on. That is exciting. Over the long run but better technologies and hydrogen and roofing Carbon Dioxide from the air at a global level by 2050 is the best trajectories we need we need work in this space. What we are seeing the certain level of excitement. Small Modular Nuclear Reactors et cetera. Those are going to go see them come online more. How do we think about whether the balance rights . In deploying things we know how to deploy near term. Much less the money being spent on thats transformative theres a significant amount of effort money to do demonstrations of the newer technologies. Largely that is the department of energy. We are seeing momentum across a range of technologies. But, its a whole government effort the authorities the president has including the defense reduction act. We have a challenge this is the critical decade. So there is a reason why i think we are seeing more auteur technologies but ones where were prices being driven down the Cost Reduction the cycle of innovation that is still happening. We are seeing that most of these announcements are the forefront of that paragraph the next panel after ours will be about politics and economics. The going to talk about the importance that done with stock valuations and companies. When the Inflation Reduction Act we talked about Brown Companies or professional Companies Went down. Not much more than people expected but we are subsidizing a lot of stuff but we are not taxing and regulating pollution. We have that balance wrong . When do we need to fix that problem . Fundamentally a shift in thinking in the United States was if you go back to 2009, 2010 i think we stopped asking the question, what do we need to shut down . Thats the first matter of interest assert asking what do we need to build question rick hadley billed for a future thats clean . That is at the heart of the Inflation Reduction Act. On the loose external factors but. Seem to be doing okay. Those have impact on oil prices the shift of resources and the production of natural gas to support our allies and partners. Because of their overdependence on russian fossil fuels was real. That was happening. There are ways we are trying to develop the supplyside with epa. The fossils there is a variety of things we are doing. Fundamentally that shifted thats a good thing we need to stick with this for very long time. You heard over and over again seven out of 10 americans were about the wind is that like Obamacare Popular over time . When is it going to be popular . It is it takes a while for people to feel it might mention the 170,000 jobs. 1. 5 million jobs. As investments and Gain Momentum more communities across the country are going to feel the real impact of that. The programs of the rebate there are the programs the tax credits for the whole house efficiency improvements for the use of better appliances. People wont file their taxes until the spring when they finally notice they get the benefits from its. We are on track. We Just Announced new rules to make availability of the tax credit for consumer electric vehicle purchases. Will be available at the point of sale that is an important change but it took a while to get the system built so when a consumer goes to a dealers lot they get the credit. Took a while to understand how much impact they have. What is not different people may not know look at whats going on and the world people dont pay that much attention with the bills and legislation et cetera. The underlying provisions of the bill the buildout of clean energy and support for Clean Technologies approach remain highly popular by the time it passes and underwater it took a while to build that up. All of the components of the Inflation Reduction Act remain popular. Including acrosstheboard including by republicans. I think it is going to take a little while for people to feel this. We have an obligation to go out there and try to ensure people know about it and we are fanned out across the country whos the prep present Vice President trying to do that. One is on environmental justice. You said in an interview that borne the brunt of industrial pollution should be first in line they are arty targets 40 of the resources going to the communities. The politics of that are clear enough. My question is do we know how to do that . What are the good models . It can be rebalanced. To answer that in two parts. There are structural elements that help in this regard. And are different normally people pay no attention to this and Building Support for whatever policy particularly nuclear energy. Negative bonus credits for deploying Energy Communities. In disadvantaged communities. I spent time with Business Leaders try to make those investments thats treasury prioritize getting guidance out and what constituted the bonus for content for investing in Energy Community disadvantaged community. Federally supported housing projects. There are specific programs targeted assert less part of the total, right . Do not underestimate that 10 maybe it doesnt sound like a lot but on 100 million its 10 million. That is influencing peoples decisions thats what we see a battery factory springing up from that remnants of the steel factory. We are seeing people decide to make investments where they are they take advantage of that. There specific programs that one huge challenge that have the least capitol that take advantage of federal investment were to structure deals. One of things we have seen through grantmaking the covers federal agencies but pushing the Philanthropic Community to invest in Technical Assistance so that those communities are not left behind. They cant access the federal resources. It is incumbent upon all of us the federal government to make sure that works. I want requires capitol to attract capitol. Before go to the audits for audience questions and went to ask you one international question about our allies. And if you were marks mentioned investments here drive down the global cost of technology in the global impact. That tells me global trade, Global Investment is a good thing for it but im hearing from other countries is they see Inflation Reduction Act called the most act ever written. A little dramatic. European allies are concerned by impact on Jobs Investment back home. Are they resigned now to the fact of your doing this . Should they be happy about it . First of all almost everybodys pretty happy the United States is back in the lead having watched for years of Administration Try to dismantle every clean Energy Provision that was put in place by previous administrations they are pretty happy they have a president who is taking this challenge seriously trying to work cooperatively and in dialogue. And that the United States is making good on its commitment to reduce its own admissions. Secondly we try to have a serious dialogue about how we Work Together to do that. I just came back from brussels. We are in the throes trying to negotiate mineral agreement which would give the mining and production Critical Minerals and europe access to the credits here. Things like that . I think it means working cooperatively to ensure we are not in a position europe was in in front of ukraine war. As a certain amounts but i think in in reality what it has done is spurred action. When you see the green industrial policy the eu built that would not have happened without the Inflation Reduction Act passing. So with that comes a little bit more shoulder to the wheel that is a good thing. Raise your hands we are going to go first lisette freedman and we have one question back there. Short questions be of limited time, lisa . Thanks, thank you for taking my question. Back to permitting the speaker issues not much is getting done this year do you see realistically any opening for something to move on permitting . For compromise seems to be on the table. Yes it is perfect is our inflationary times you have questions please. The compromise and others have proposed transmission for judicial review make it easier to cite possible fuel projects is that a compromise theyre willing to accept . I was say two things. We made our key changes, improvements making the process clear. It was far back to last spring before the debt deal was done and a relatively modest set of changes which is what we are arty implementing which help speed things up. On the question of whether there is hope for further legislative reform i would say two things one were not made for that i mentioned the fact we are all in on trying to use very senior level of the administration but at the cabinet level people trying to move projects along. We are hopeful there still room for bipartisan dialogue. I think we have a constructive conversation going on on the senate side with senator carper, et cetera mansion and others, senator schumer. We will see if something can emerge from that. Im not going to prejudge the outcome. But i think there are certain red lines we will not cross. Hr1 undermined the original decision that came out of the house. Undermined core environmental laws including the Clean Air Act clean water act. In the toxic waste act. We are not going to cross those red lines but we think we can permit these projects without having to do that. We were open to some changes. We are open to increasing the process. We signed a memorandum of agreement between the agencies and the president directed the use of provision and the federal power act the secretary of energy on transmission the authority to consolidate both timeline, documentation, and enforce those. And we are implementing that. We are going to do what it takes a very quick see of the microphone to the gentleman in the pink tie for a quick followup. All of the examples you said were about federal for permitting reform are we not paying enough attention to the states . Its a very good question. Some states have taken this on. Have a lot to do in california. We had in the Inflation Reduction Act about three to Million Dollars to support state reform of their permitting processes. But often the worst problems happen at the state and local level i think we are pretty clear if you get in early you can use mitigation strategies other strategies to work around problems that are real. But it think of the state and local level there is still a need for focus and reform. Under the chair of governor cox has made this a priority. Hi, chris knight. To a different flavor of the same question. About one flavor will not pass further changes youre going to flex more authorities to mix these projects happen permitting happen . Ill let others be a judge of the productivity of what you estimate the productivity of the Current Congress is likely to be. What i am basically saying is that where we have authority we can utilize it where we have money they change systems et cetera were going to utilize it to get the job done. We are still hopeful there will be legislation produced. The house you be a judge how well they are functioning these days and how much you can anticipate a focus on the Serious Problems facing the country or how much there are more internally focused. Looks before go to this gentleman right here a quick question. It seems that this bipartisan agreement we should be within china. What is most promising in your eyes as you know i spent a lot of time during the Obama Administration. Me know who the people are. And look in his most recent visits trying to stimulate more positive dialogue. There is no question i think the whole world leads to pressure china to begin to stop building new coalfired power under charting what they have. There is an obligation on all of us to try to keep that pressure on the Chinese Government and move away. They are deploying a lot of renewable energy. But until they begin to turn the corner and reduce the power and do it now, not do it in the 2030s the world is in trouble. But i think in terms of where there is possibilities. I think our division is really focused in the area and you put that in place are plot places like methane reduction, Agricultural Production may be one place we could do a better job is on Coordination International finance where we have high standards. But right now it is not 2015 anymore progress one minute maybe two. The details to our questioner. Bob y marbury. If there is successful gas consumption will reduce. However the cost of infrastructure is fixed largely over the next 50 or 60 years. So if the gas consumption is reduced to per unit cost gas is going to have to go up because of assets. That will have a Significant Impact on low and moderate income communities. What can we do to protect the low end moderate Income Committee some essential being stuck with the costs of the transition from fossil fuel to renewals . That is an excellent question. I think what we are trying to do with the Current Program that we have, i mentioned the Greenhouse Gas reduction program. For those of you who follow this in detail the 48 little e that is intended to build out rooftop solar communities solar the rebate programs are targeted at a moderate and low income communities that can reduce the cost for households and communities. We have to be extremely attentive to the questions you are describing. Whether that ultimately has the effect in terms of averaging out. We have seen that trying to make sure those resources are targeted at the communities that are more burdened. One of the things and maybe its because i grew up in a bluecollar neighborhood in chicago were just dead in a record time put out one point to . 5 billion of urban forestry money. Often born the burden of tree deserts. The difference as much as 10 degrees sometimes more between the urban core and suburban neighborhoods. And in cities across the country. That is intended to improve the health and wellbeing of people in those communities. It will work. I think we have to ensure this is multifaceted. The average costs are going down which they are those benefits goes across the country in every pocket of the country disadvantaged communities for. Protect as moderator of two more jobs one job is to remind all of you to stay in your seats we do a changing of the guards up here for the next panel one with pleasure is to thank jon for his help thank you jon. [background noises]