Landmark climate law drives US energy transition, but hurdles remain

Nicholas Hartnett, owner of Pure Power Solar, carries a panel as he and Brian Hoeppner, right, install a solar array on the roof of a home in Frankfort, Ky., Monday, July 17, 2023. Tax credits from the Inflation Reduction Act will reduce the cost of installing rooftop solar panels by 30%, which will in turn lower monthly electricity bills.

Michael Conroy/AP

A year ago, Sonia Aggarwal watched from home as the votes came in on the U.S. Senate floor. Aggarwal was working as a White House aide, advising the Biden administration on climate policy. She’d been up all night, listening as senators debated legislation she and many others had spent more than a year trying to pass.

When Vice President Kamala Harris finally cast the tie-breaking vote – 51 to 50 – on August 7, 2022, Aggarwal was in tears.

With that vote, the country’s most significant climate legislation made it through the U.S. Senate, a body that had stymied previous efforts for decades. The bill went on to clear the U.S. House, and made its way to President Joe Biden for his signature on August 16, 2022.

“The Inflation Reduction Act is the most significant step forward on climate in American history,” Aggarwal said. “Full stop.”

The Inflation Reduction Act (IRA) may have a bureaucratic name, but it sets expansive goals. The policy aims to dramatically decrease the U.S. contribution to climate change, slashing greenhouse gas emissions by shifting the economy away from fossil fuels.