What is an “Energy Community?” Understanding the Effects of the Inflation Reduction Act
An event examining the Inflation Reduction Act’s provisions targeting “energy communities” and what it could mean for fossil fuel-dependent communities.
As the United States begins to move toward its net-zero goals, policymakers are looking to mitigate the impacts of a transition to clean energy on communities that currently rely heavily on fossil fuel production. The Inflation Reduction Act of 2022 (IRA) includes a provision that directs additional financial incentives for clean energy projects developed in “energy communities,” which could provide economic benefits to regions that face challenges associated with the energy transition. However, what constitutes an “energy community,” and does this provision sufficiently target the most vulnerable communities?
On Tuesday, November 1, Resources for the Future (RFF) hosted an event examining the IRA’s provisions targeting “energy communities” and what it could mean for fossil fuel-dependent communities. Researchers from RFF presented their analysis of the provision’s potential impacts, alternative interpretations, and a new approach for defining an “energy community.” Then, a panel of experts discussed its effectiveness, uncertainties behind the law’s implementation, and the broader implications of the transition to a net-zero economy.
- Julia Haggerty, Montana State University
- Erin Mayfield, Dartmouth College
- Sophie Pesek, Resources for the Future
- Daniel Raimi, Resources for the Future
- Benjamin Storrow, E&E News (Moderator)
Sophie Pesek is a research analyst for the Climate Risks and Impacts and Adaptation and Resilience programs at RFF.
Daniel Raimi is a fellow and director of the Equity in the Energy Transition Initiative at RFF where he works on a range of energy policy issues with a focus on tools to enable an equitable energy transition.
Testimony and Public Comments — Dec 1, 2022
Comments to Treasury on Clean Hydrogen Credits
To the Department of Treasury and the Internal Revenue Service on the 45V clean hydrogen tax credit.
Testimony and Public Comments — Nov 21, 2022
Calculating Life-Cycle Emissions from Electricity Consumption
To the Department of Energy on the Clean Hydrogen Production Standard.
Issue Brief — Nov 21, 2022
The Shadow Price of Capital: Accounting for Capital Displacement in Benefit–Cost Analysis
This issue brief explains why the discounting sensitivity case using a 7 percent investment rate of return is generally incorrect and can yield extremely misleading estimates of the costs and benefits of policies with long-lived impacts.